United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-5950
(Investment Company Act File Number)
Money Market Obligations Trust
______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
Peter J. Germain, Esquire
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End:10/31/19
Date of Reporting Period:Six months ended 04/30/19
| Item 1. | Reports to Stockholders |
Semi-Annual Shareholder Report
April 30, 2019
| Share Class | Ticker | Wealth | CAIXX | Service | CACXX | Cash II | CALXX |
| Cash Series | CCSXX | Capital | CCCXX |
Federated California Municipal Cash Trust
A Portfolio of Money Market Obligations Trust
IMPORTANT NOTICE REGARDING REPORT DELIVERY
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4. Your election to receive reports in paper will apply to all funds held with the Fund complex or your financial intermediary.
The Fund is a Retail Money Market Fund and is only available for investment to accounts beneficially owned by natural persons.
Not FDIC Insured ■ May Lose Value ■ No Bank Guarantee
Portfolio of Investments Summary Tables (unaudited)
At April 30, 2019, the Fund's portfolio composition1 was as follows:
| Security Type | Percentage of Total Net Assets |
| Variable Rate Demand Instruments | 60.5% |
| Commercial Paper | 28.1% |
| Municipal Notes | 10.9% |
| Other Assets and Liabilities—Net2 | 0.5% |
| TOTAL | 100.0% |
At April 30, 2019, the Fund's effective maturity schedule3 was as follows:
| Securities With an Effective Maturity of: | Percentage of Total Net Assets |
| 1-7 Days | 62.6% |
| 8-30 Days | 3.6% |
| 31-90 Days | 26.2% |
| 91-180 Days | 7.1% |
| 181 Days or more | 0.0% |
| Other Assets and Liabilities—Net2 | 0.5% |
| TOTAL | 100.0% |
| 1 | See the Fund's Prospectus and Statement of Additional Information for a description of these investments. |
| 2 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
| 3 | Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940, which regulates money market mutual funds. |
Semi-Annual Shareholder Report
1
Portfolio of Investments
April 30, 2019 (unaudited)
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—99.5% | ||
| California—99.5% | |||
| $1,140,000 | ABAG Finance Authority for Non-Profit Corporations, CA (Ecology Action of Santa Cruz), (Series 2010) Weekly VRDNs, (Comerica Bank LOC), 2.350%, 5/2/2019 | $1,140,000 | |
| 7,080,000 | Alameda Corridor Transportation Authority, CA, Tender Option Bond Trust Certificates (Series 2018-XL0085) Weekly VRDNs, (Barclays Bank PLC LIQ)/(Barclays Bank PLC LOC), 2.300%, 5/2/2019 | 7,080,000 | |
| 835,000 | Alameda County, CA IDA Recovery Zone Facility (Dale Hardware, Inc.), (Series 2010) Weekly VRDNs, (Comerica Bank LOC), 2.320%, 5/2/2019 | 835,000 | |
| 6,200,000 | Alameda County, CA Joint Powers Authority (Alameda County, CA), (Series A), CP, (FHLB of San Francisco LOC), 1.600%, Mandatory Tender 5/2/2019 | 6,200,000 | |
| 9,960,000 | Alvord, CA USD, Tender Option Bond Trust Certificates (2016-XG0089) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Credit Suisse AG LIQ), 2.400%, 5/2/2019 | 9,960,000 | |
| 3,365,000 | Banning, CA USD, Tender Option Bond Trust Certificates (Series 2017-XF2440) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Morgan Stanley Bank, N.A. LIQ), 2.350%, 5/2/2019 | 3,365,000 | |
| 9,000,000 | Bay Area Toll Authority, CA, Tender Option Bond Trust Receipts (Series 2017-ZM0542) Weekly VRDNs, (Bank of America N.A. LIQ), 2.300%, 5/2/2019 | 9,000,000 | |
| 4,000,000 | Beaumont, CA Public Improvement Authority, Tender Option Bond Trust Certificates (Series 2018-ZF2715) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Morgan Stanley Bank, N.A. LIQ), 2.350%, 5/2/2019 | 4,000,000 | |
| 3,320,000 | Calexico, CA USD, Tender Option Bond Trust Certificates (2017-XG0118) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Morgan Stanley Bank, N.A. LIQ), 2.350%, 5/2/2019 | 3,320,000 | |
| 5,655,000 | California Enterprise Development Authority (Alvarado Street Bakery), (Series 2007) Weekly VRDNs, (U.S. Bank, N.A. LOC), 2.420%, 5/2/2019 | 5,655,000 | |
| 5,620,000 | California Enterprise Development Authority (Humane Society Silicon Valley), (Series 2008) Weekly VRDNs, (FHLB of San Francisco LOC), 2.420%, 5/2/2019 | 5,620,000 | |
| 6,575,000 | California Enterprise Development Authority (Ramar International Corporation), (Series 2008A) Weekly VRDNs, (Comerica Bank LOC), 2.320%, 5/2/2019 | 6,575,000 | |
| 12,200,000 | California Enterprise Development Authority (Regional Properties, Inc.), (Series 2010: Recovery Zone Facility) Weekly VRDNs, (FHLB of San Francisco LOC), 2.420%, 5/2/2019 | 12,200,000 | |
| 35,000,000 | California Health Facilities Financing Authority (Dignity Health (Catholic Healthcare West)), Golden Blue (Series 2017-004) VRENs, (Barclays Bank PLC LIQ)/(Barclays Bank PLC LOC), 2.420%, 5/2/2019 | 35,000,000 |
Semi-Annual Shareholder Report
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| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| California—continued | |||
| $20,000,000 | California Health Facilities Financing Authority (Kaiser Permanente), (Series 2006D), CP, 1.780%, Mandatory Tender 8/8/2019 | $20,000,000 | |
| 2,500,000 | California Health Facilities Financing Authority (Kaiser Permanente), RBC Muni Products (Series G-44) TOBs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.450%, Optional Tender 5/1/2019 | 2,500,000 | |
| 5,000,000 | California Health Facilities Financing Authority (Kaiser Permanente), Tender Option Bond Trust Receipts (Series 2018-XF0608) Weekly VRDNs, (TD Bank, N.A. LIQ), 2.300%, 5/2/2019 | 5,000,000 | |
| 4,180,000 | California Health Facilities Financing Authority (Lucile Salter Packard Children's Hospital at Stanford), Tender Option Bond Trust Receipts (2016-XF0451) Weekly VRDNs, (Bank of America N.A. LIQ), 2.300%, 5/2/2019 | 4,180,000 | |
| 2,000,000 | California Health Facilities Financing Authority (Providence St. Joseph Health), Revenue Bonds (Series 2013C) TOBs, 5.000%, Mandatory Tender 10/15/2019 | 2,037,809 | |
| 2,295,000 | California Health Facilities Financing Authority (Providence St. Joseph Health), Tender Option Bond Trust Receipts (Series 2018-XM0696) Weekly VRDNs, (Bank of America N.A. LIQ), 2.300%, 5/2/2019 | 2,295,000 | |
| 8,625,000 | California Health Facilities Financing Authority (Sutter Health), Tender Option Bond Trust Certificates (2017-XF2417) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.310%, 5/2/2019 | 8,625,000 | |
| 4,765,000 | California Infrastructure & Economic Development Bank (Saddleback Valley Christian Schools), (Series 2010A) Weekly VRDNs, (FHLB of San Francisco LOC), 2.360%, 5/2/2019 | 4,765,000 | |
| 9,715,000 | California Infrastructure & Economic Development Bank (St. Margaret of Scotland Episcopal School), (Series 2008) Monthly VRDNs, (FHLB of San Francisco LOC), 1.750%, 5/1/2019 | 9,715,000 | |
| 3,795,000 | California Infrastructure & Economic Development Bank (Tobinworld), (Series 2007A) Weekly VRDNs, (Comerica Bank LOC), 2.400%, 5/2/2019 | 3,795,000 | |
| 5,910,000 | California Infrastructure & Economic Development Bank (University of California (The Regents of)), Series 2019-XF0748 Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.300%, 5/2/2019 | 5,910,000 | |
| 1,860,000 | California Municipal Finance Authority (High Desert Partnership in Academic Excellence Foundation, Inc.), (Series 2012A) Weekly VRDNs, (MUFG Union Bank, N.A. LOC), 2.400%, 5/2/2019 | 1,860,000 | |
| 3,100,000 | California PCFA (Air Products & Chemicals, Inc.), (Series 1997B) Daily VRDNs, 2.150%, 5/1/2019 | 3,100,000 | |
| 780,000 | California PCFA (Mission Trail Waste Systems, Inc.), (Series 2010A) Weekly VRDNs, (Comerica Bank LOC), 2.320%, 5/1/2019 | 780,000 | |
| 14,720,000 | California State Department of Water Resources Power Supply Program, (Series L), 5.000%, 5/1/2019 | 14,720,000 | |
| 5,755,000 | California State Department of Water Resources, (Series 1), CP, 1.610%, Mandatory Tender 5/6/2019 | 5,755,000 | |
| 9,133,000 | California State Department of Water Resources, (Series 1), CP, 1.650%, Mandatory Tender 5/2/2019 | 9,133,000 |
Semi-Annual Shareholder Report
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| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| California—continued | |||
| $4,500,000 | California State Department of Water Resources, (Series 2), CP, 1.530%, Mandatory Tender 5/22/2019 | $4,500,000 | |
| 5,000,000 | California State Department of Water Resources, (Series 2), CP, 1.900%, Mandatory Tender 6/13/2019 | 5,000,000 | |
| 2,235,000 | California State University (The Trustees of), Tender Option Bond Trust Receipts (Series 2018-ZF0673) Weekly VRDNs, (Bank of America N.A. LIQ), 2.300%, 5/2/2019 | 2,235,000 | |
| 1,800,000 | California State University (The Trustees of), Tender Option Bond Trust Receipts (Series 2019-XF0740) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.280%, 5/2/2019 | 1,800,000 | |
| 6,000,000 | California State University Institute, (Series A), CP, (State Street Bank and Trust Co. LOC)/(Wells Fargo Bank, N.A. LOC), 1.700%, Mandatory Tender 6/5/2019 | 6,000,000 | |
| 24,500,000 | California State, (Series 2003C-1) Weekly VRDNs, (TD Bank, N.A. LOC), 2.250%, 5/2/2019 | 24,500,000 | |
| 20,000,000 | California State, (Series 2005 A2-1) Weekly VRDNs, (Sumitomo Mitsui Banking Corp. LOC), 2.270%, 5/1/2019 | 20,000,000 | |
| 5,000,000 | California State, (Series 2011A-2), CP, (Royal Bank of Canada LOC), 1.550%, Mandatory Tender 6/4/2019 | 5,000,000 | |
| 5,490,000 | California State, (Series A-6), CP, (Bank of America N.A. LOC), 1.800%, Mandatory Tender 6/3/2019 | 5,490,000 | |
| 2,500,000 | California State, RBC Muni Products (Series G-68) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 2,500,000 | |
| 2,000,000 | California State, RBC Muni Products, Inc., Trust Floater Certificates (Series G-1) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 2,000,000 | |
| 4,000,000 | California State, RBC Muni Products, Inc., Trust Floater Certificates (Series G-2) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 4,000,000 | |
| 2,220,000 | California Statewide Communities Development Authority (Cruzio Holding Company, LLC), (Series 2010: Recovery Zone Facility) Weekly VRDNs, (Comerica Bank LOC), 2.350%, 5/2/2019 | 2,220,000 | |
| 5,045,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2004E), CP, 1.600%, Mandatory Tender 6/11/2019 | 5,045,000 | |
| 7,455,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2004I), CP, 1.820%, Mandatory Tender 5/9/2019 | 7,455,000 | |
| 15,000,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2004K), CP, 1.600%, Mandatory Tender 6/11/2019 | 15,000,000 | |
| 6,230,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2004K), CP, 1.800%, Mandatory Tender 5/3/2019 | 6,230,000 |
Semi-Annual Shareholder Report
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| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| California—continued | |||
| $15,000,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2008B), CP, 1.700%, Mandatory Tender 7/16/2019 | $15,000,000 | |
| 20,000,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2008C), CP, 1.650%, Mandatory Tender 9/5/2019 | 20,000,000 | |
| 10,000,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2008C), CP, 1.770%, Mandatory Tender 8/7/2019 | 10,000,000 | |
| 10,000,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2009 B-6), CP, 1.750%, Mandatory Tender 6/5/2019 | 10,000,000 | |
| 18,000,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2009B-1), CP, 1.730%, Mandatory Tender 7/11/2019 | 18,000,000 | |
| 23,340,000 | California Statewide Communities Development Authority (Kaiser Permanente), Tender Option Bond Trust Receipts (Series 2015-ZF0199) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.300%, 5/2/2019 | 23,340,000 | |
| 6,465,000 | California Statewide Communities Development Authority (Pacific Collegiate Foundation), (Series 2016) Weekly VRDNs, (Comerica Bank LOC), 2.350%, 5/2/2019 | 6,465,000 | |
| 1,295,000 | California Statewide Communities Development Authority (Penny Lane Centers), (Series 2008) Weekly VRDNs, (U.S. Bank, N.A. LOC), 2.340%, 5/2/2019 | 1,295,000 | |
| 5,600,000 | California Statewide Communities Development Authority MFH (Beaumont CA Leased Housing Associates I, LP), (2010 Series B: Mountain View Apartments) Weekly VRDNs, (FHLMC LOC), 2.380%, 5/2/2019 | 5,600,000 | |
| 39,225,000 | California Statewide Communities Development Authority MFH (Uptown Newport Building Owner, LP), (2017 Series BB: Uptown Newport Apartments) Weekly VRDNs, (FHLB of Des Moines LOC)/(FHLB of San Francisco LOC), 2.360%, 5/2/2019 | 39,225,000 | |
| 4,050,000 | California Statewide Communities Development Authority, (Series 2010A: Gas Supply Variable Rate Revenue Bonds) TOBs, (GTD by Royal Bank of Canada)/(Royal Bank of Canada LIQ), 2.400%, Optional Tender 5/1/2019 | 4,050,000 | |
| 25,625,000 | California Statewide Communities Development Authority, (Series 2010B: Gas Supply Variable Rate Revenue Bonds) TOBs, (GTD by Royal Bank of Canada)/(Royal Bank of Canada LIQ), 2.400%, Optional Tender 5/1/2019 | 25,625,000 | |
| 7,500,000 | Central Basin Municipal Water District, CA, Tender Option Bond Trust Certificates (2016-XG0038) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Morgan Stanley Bank, N.A. LIQ), 2.400%, 5/2/2019 | 7,500,000 | |
| 3,600,000 | Central, CA Union High School District, Tender Option Bond Trust Receipts (Series 2019-XF0759) Weekly VRDNs, (Toronto Dominion Bank LIQ), 2.340%, 5/2/2019 | 3,600,000 |
Semi-Annual Shareholder Report
5
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| California—continued | |||
| $3,040,000 | Central, CA USD, Tender Option Bond Trust Receipts (Series 2019-XF0758) Weekly VRDNs, (Toronto Dominion Bank LIQ), 2.340%, 5/2/2019 | $3,040,000 | |
| 5,000,000 | Coast CCD, CA, (Series 2018 G-7) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 5,000,000 | |
| 5,705,000 | Coast CCD, CA, Tender Option Bond Trust Receipt (2018-XM0869) Weekly VRDNs, (Royal Bank of Canada LIQ), 2.300%, 5/2/2019 | 5,705,000 | |
| 4,000,000 | Corona-Norco, CA USD, RBC Muni Products (Series G-64) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 4,000,000 | |
| 4,655,000 | Davis Joint USD, CA, Tender Option Bond Trust Certificates (Series 2019-XM0730) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Barclays Bank PLC LIQ), 2.350%, 5/2/2019 | 4,655,000 | |
| 9,890,000 | East Side, CA Union High School District, Stage Trust (Series 2011-120C) TOBs, (GTD by Wells Fargo Bank, N.A.)/(Wells Fargo Bank, N.A. LIQ), 2.570%, Optional Tender 7/25/2019 | 9,890,000 | |
| 2,105,000 | Elk Grove, CA USD, Tender Option Bond Trust Receipts (Series 2017-XG0127) Weekly VRDNs, (Bank of America N.A. LIQ), 2.310%, 5/2/2019 | 2,105,000 | |
| 2,000,000 | Escondido, CA, RBC Muni Products (Series G-77) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 2,000,000 | |
| 32,340,000 | Fairfield-Suisun, CA USD, Solar Eclipse (Series 2016-0002) Daily VRDNs, (U.S. Bank, N.A. LIQ), 2.250%, 5/1/2019 | 32,340,000 | |
| 3,425,000 | Fremont, CA Union High School District, Tender Option Bond Trust Receipts (Series 2018-XF0647) Weekly VRDNs, (TD Bank, N.A. LIQ), 2.300%, 5/2/2019 | 3,425,000 | |
| 2,500,000 | Grossmont-Cuyamaca, CA CCD, Tender Option Bond Trust Receipts (2018-XF0669) Weekly VRDNs, (Royal Bank of Canada LIQ), 2.310%, 5/2/2019 | 2,500,000 | |
| 2,000,000 | Grossmont-Cuyamaca, CA CCD, Tender Option Bond Trust Receipts (Series 2018-XG0188) Weekly VRDNs, (Royal Bank of Canada LIQ), 2.310%, 5/2/2019 | 2,000,000 | |
| 22,060,000 | Hayward, CA USD, Tender Option Bond Trust Receipts (2017-XF0545) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Bank of America N.A. LIQ), 2.310%, 5/2/2019 | 22,060,000 | |
| 1,515,000 | Hollister, CA Redevelopment Agency (San Benito County Community Services Development Corp.), (Series 2004) Weekly VRDNs, (MUFG Union Bank, N.A. LOC), 2.400%, 5/2/2019 | 1,515,000 | |
| 3,590,000 | Imperial Irrigation District, CA, Tender Option Bond Trust Receipts (Series 2018-XM0611) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.300%, 5/2/2019 | 3,590,000 | |
| 4,000,000 | Los Angeles County, CA Capital Asset Leasing Corporation, (Series A), CP, (Bank of the West, San Francisco, CA LOC), 1.780%, Mandatory Tender 6/26/2019 | 4,000,000 | |
| 5,000,000 | Los Angeles County, CA TRANs, 4.000%, 6/28/2019 | 5,019,167 |
Semi-Annual Shareholder Report
6
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| California—continued | |||
| $10,000,000 | Los Angeles, CA Department of Water & Power (Electric/Power System), CP, 1.590%, Mandatory Tender 5/9/2019 | $10,000,000 | |
| 3,300,000 | Los Angeles, CA Department of Water & Power (Electric/Power System), Tender Option Bond Trust Receipts (Series 2017-XF0570) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.280%, 5/2/2019 | 3,300,000 | |
| 7,520,000 | Los Angeles, CA Department of Water & Power (Electric/Power System), Tender Option Bond Trust Receipts (Series 2018-XF0732) Weekly VRDNs, (Toronto Dominion Bank LIQ), 2.300%, 5/2/2019 | 7,520,000 | |
| 3,000,000 | Los Angeles, CA Department of Water & Power (Water Works/System), Tender Option Bond Trust Receipts (Series 2017-XG0121) Weekly VRDNs, (Bank of America N.A. LIQ), 2.300%, 5/2/2019 | 3,000,000 | |
| 35,695,000 | Los Angeles, CA TRANs, 4.000%, 6/27/2019 | 35,824,161 | |
| 2,885,000 | Los Angeles, CA USD, Tender Option Bond Trust Receipts (Series 2018-XM0703) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.300%, 5/2/2019 | 2,885,000 | |
| 5,000,000 | Los Angeles, CA USD, Tender Option Bond Trust Receipts (Series 2018-ZM0590) Weekly VRDNs, (Bank of America N.A. LIQ), 2.320%, 5/2/2019 | 5,000,000 | |
| 4,985,000 | Lucia Mar, CA USD, Tender Option Bond Trust Receipts (Series 2018-XG0181) Weekly VRDNs, (Bank of America N.A. LIQ), 2.310%, 5/2/2019 | 4,985,000 | |
| 6,670,000 | Manteca, CA USD, Tender Option Bond Trust Certificates (2015-ZM0093) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.370%, 5/2/2019 | 6,670,000 | |
| 10,000,000 | Nuveen California AMT-Free Quality Municipal Income Fund, (Series 6) Weekly VRDPs, (Sumitomo Mitsui Banking Corp. LIQ), 2.310%, 5/2/2019 | 10,000,000 | |
| 4,970,000 | Ontario-Montclair, CA School District, Tender Option Bond Trust Certificates (Series 2019-XF2805) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.330%, 5/2/2019 | 4,970,000 | |
| 2,505,000 | Oxnard, CA School District, (Series 2018 G-8) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 2,505,000 | |
| 1,190,000 | Pittsburg, CA USD, Tender Option Bond Trust Receipts (Series 2017-XF0578) Weekly VRDNs, (TD Bank, N.A. LIQ), 2.350%, 5/2/2019 | 1,190,000 | |
| 17,690,000 | Pomona, CA USD, Tender Option Bond Trust Certificates (Series 2017-XF2446) Weekly VRDNs, (Build America Mutual Assurance INS)/(Citibank N.A., New York LIQ), 2.350%, 5/2/2019 | 17,690,000 | |
| 7,500,000 | Riverside County, CA Public Financing Authority (Riverside County, CA), Tender Option Bond Trust Receipt (2017-ZF0538) Weekly VRDNs, (Royal Bank of Canada LIQ), 2.400%, 5/2/2019 | 7,500,000 | |
| 7,500,000 | Sacramento, CA Municipal Utility District, (Subseries K-1), CP, (State Street Bank and Trust Co. LOC), 1.580%, Mandatory Tender 7/1/2019 | 7,500,000 | |
| 18,800,000 | Sacramento, CA Municipal Utility District, (Subseries K-1), CP, (State Street Bank and Trust Co. LOC), 1.600%, Mandatory Tender 7/3/2019 | 18,800,000 |
Semi-Annual Shareholder Report
7
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| California—continued | |||
| $10,000,000 | Sacramento, CA Municipal Utility District, (Subseries L-1), CP, (Barclays Bank PLC LOC), 1.600%, Mandatory Tender 5/1/2019 | $10,000,000 | |
| 1,000,000 | San Bernardino, CA CCD, RBC Muni Products (Series G-78) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 1,000,000 | |
| 3,450,000 | San Diego County, CA (Museum of Contemporary Art San Diego), (Series 2004) Weekly VRDNs, (Northern Trust Co., Chicago, IL LOC), 2.320%, 5/2/2019 | 3,450,000 | |
| 24,000,000 | San Diego County, CA Water Authority, (Series 8), CP, (MUFG Bank Ltd. LIQ), 1.700%, Mandatory Tender 6/4/2019 | 24,000,000 | |
| 5,000,000 | San Diego County, CA Water Authority, (Series 8), CP, (MUFG Bank Ltd. LIQ), 2.070%, Mandatory Tender 5/2/2019 | 5,000,000 | |
| 3,000,000 | San Diego, CA USD, RBC Muni Products (Series 2018-G51) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 3,000,000 | |
| 8,275,000 | San Diego, CA USD, Tender Option Bond Trust Receipts (Series 2019-ZM0755) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.300%, 5/2/2019 | 8,275,000 | |
| 9,945,000 | San Francisco, CA City & County Airport Commission, Stage Trust (Series 2010-03C) TOBs, (GTD by Wells Fargo Bank, N.A.)/(Wells Fargo Bank, N.A. LIQ), 2.570%, Optional Tender 7/25/2019 | 9,945,000 | |
| 1,690,000 | San Francisco, CA City & County MFH (Related/Mariposa Development Co. LP), (2017 Series B-2) Weekly VRDNs, (Bank of America N.A. LOC), 2.250%, 5/1/2019 | 1,690,000 | |
| 5,600,000 | San Francisco, CA Public Utilities Commission (Power Enterprise), (Series A-1), CP, (Bank of America N.A. LOC), 1.680%, Mandatory Tender 6/4/2019 | 5,600,000 | |
| 19,928,000 | San Francisco, CA Public Utilities Commission (Wastewater Enterprise), (Series A-2), CP, (Bank of America N.A. LOC), 1.630%, Mandatory Tender 7/30/2019 | 19,928,000 | |
| 3,330,000 | San Francisco, CA Public Utilities Commission (Water Enterprise), Tender Option Bond Trust Receipts (Series 2018-XF0607) Weekly VRDNs, (TD Bank, N.A. LIQ), 2.300%, 5/2/2019 | 3,330,000 | |
| 2,230,000 | San Mateo County, CA CCD, Tender Option Bond Trust Certificates (Series 2018-XM0712) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.310%, 5/2/2019 | 2,230,000 | |
| 3,795,000 | San Rafael City, CA High School District, Tender Option Bond Trust Receipts (Series 2018-XF0674) Weekly VRDNs, (Royal Bank of Canada LIQ), 2.310%, 5/2/2019 | 3,795,000 | |
| 2,985,000 | Santa Clara County, CA, (Series 2018-XF0646) Weekly VRDNs, (Toronto Dominion Bank LIQ), 2.300%, 5/2/2019 | 2,985,000 | |
| 1,960,000 | Santa Clara Valley, CA Water District, (Series A), CP, (MUFG Bank Ltd. LOC), 1.540%, Mandatory Tender 5/9/2019 | 1,960,000 | |
| 3,000,000 | Sonoma County, CA Junior College District, (Series 2018 G-6) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 3,000,000 |
Semi-Annual Shareholder Report
8
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| California��continued | |||
| $3,000,000 | Southern California Public Power Authority (Power Projects), (Series 2009-1: Magnolia Power Project A) Daily VRDNs, (U.S. Bank, N.A. LOC), 2.050%, 5/1/2019 | $3,000,000 | |
| 2,410,000 | Southwestern CCD, CA, Tender Option Bond Trust Receipts (Series 2015-ZF0250) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.400%, 5/2/2019 | 2,410,000 | |
| 4,750,000 | Sweetwater, CA Union High School District, RBC Muni Products, Inc. Trust (Series G-95) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 4,750,000 | |
| 8,490,000 | Twin Rivers, CA USD, Tender Option Bond Trust Certificates (Series 2017-XF2442) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Morgan Stanley Bank, N.A. LIQ), 2.350%, 5/2/2019 | 8,490,000 | |
| 11,335,000 | University of California (The Regents of), (2013 Series AL-3) Daily VRDNs, 2.070%, 5/1/2019 | 11,335,000 | |
| 2,450,000 | University of California (The Regents of), (Series A), CP, 1.550%, Mandatory Tender 5/22/2019 | 2,450,000 | |
| 10,000,000 | University of California (The Regents of), Tender Option Bond Trust Certificates (Series 2018-ZF2670) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.320%, 5/2/2019 | 10,000,000 | |
| 2,675,000 | University of California (The Regents of), Tender Option Bond Trust Receipts (2016-XF0524) Weekly VRDNs, (TD Bank, N.A. LIQ), 2.300%, 5/2/2019 | 2,675,000 | |
| 1,500,000 | University of California (The Regents of), Tender Option Bond Trust Receipts (Series 2018-ZM0660) Weekly VRDNs, (Bank of America N.A. LIQ), 2.300%, 5/2/2019 | 1,500,000 | |
| 5,630,000 | Ventura County, CA Public Financing Authority (Ventura County, CA), Series 2015-ZF2065 Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.350%, 5/2/2019 | 5,630,000 | |
| 5,685,000 | Ventura County, CA Public Financing Authority (Ventura County, CA), Series 2015-ZF2066 Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.350%, 5/2/2019 | 5,685,000 | |
| 8,675,000 | Visalia, CA USD, Floater Certificates (Series 2018-ZM0657) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Morgan Stanley Bank, N.A. LIQ), 2.320%, 5/2/2019 | 8,675,000 | |
| 13,585,000 | Western Placer, CA USD, Tender Option Bond Trust Receipts (Series 2017-XG0152) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Barclays Bank PLC LIQ), 2.350%, 5/2/2019 | 13,585,000 | |
| 23,035,000 | Whittier, CA Health Facility Revenue Bonds (Presbyterian Intercommunity Hospital Obligated Group), Golden Blue 3a-7 (Series 2018-030) VRENs, (Barclays Bank PLC LIQ)/(Barclays Bank PLC LOC), 2.420%, 5/2/2019 | 23,035,000 |
Semi-Annual Shareholder Report
9
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| California—continued | |||
| $3,350,000 | Yosemite, CA CCD, RBC Muni Products (Series 2018-G50) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | $3,350,000 | |
| TOTAL INVESTMENT IN SECURITIES—99.5% (AT AMORTIZED COST)2 | 1,000,737,137 | ||
| OTHER ASSETS AND LIABILITIES - NET—0.5%3 | 4,775,969 | ||
| TOTAL NET ASSETS—100% | $1,005,513,106 |
At April 30, 2019, the Fund held no securities that are subject to the federal alternative minimum tax (AMT).
| 1 | Current rate and current maturity or next reset date shown for floating rate notes and variable rate notes/demand instruments. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
| 2 | Also represents cost for federal tax purposes. |
| 3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Note: The categories of investments are shown as a percentage of total net assets at April 30, 2019.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
In valuing the Fund's assets, as of April 30, 2019, all investments of the Fund are valued using amortized cost, which is a methodology utilizing Level 2 inputs.
Semi-Annual Shareholder Report
10
The following acronyms are used throughout this portfolio:
| CCD | —Community College District |
| CP | —Commercial Paper |
| FHLB | —Federal Home Loan Bank |
| FHLMC | —Federal Home Loan Mortgage Corporation |
| GTD | —Guaranteed |
| IDA | —Industrial Development Authority |
| INS | —Insured |
| LIQ | —Liquidity Agreement |
| LOC | —Letter of Credit |
| MFH | —Multi-Family Housing |
| PCFA | —Pollution Control Finance Authority |
| TOBs | —Tender Option Bonds |
| TRANs | —Tax and Revenue Anticipation Notes |
| USD | —Unified School District |
| VRDNs | —Variable Rate Demand Notes |
| VRDPs | —Variable Rate Demand Preferreds |
| VRENs | —Variable Rate Extendible Notes |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
11
Financial Highlights–Wealth Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.007 | 0.011 | 0.006 | 0.002 | 0.0001 | 0.0001 |
| Net realized gain (loss) | 0.0001 | (0.000)1 | 0.0001 | 0.003 | 0.0001 | 0.0001 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.007 | 0.011 | 0.006 | 0.005 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.007) | (0.011) | (0.006) | (0.002) | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | (0.000)1 | (0.000)1 | (0.000)1 | (0.003) | (0.000)1 | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.007) | (0.011) | (0.006) | (0.005) | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.69% | 1.10% | 0.56% | 0.49% | 0.02% | 0.03% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 0.28%3 | 0.28% | 0.28% | 0.18%4 | 0.08% | 0.09% |
| Net investment income | 1.38%3 | 1.10% | 0.58% | 0.12% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.14%3 | 0.19% | 0.29% | 0.39% | 0.51% | 0.53% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $469,420 | $372,325 | $156,974 | $54,046 | $147,528 | $119,823 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.18% after taking into account these expense reductions. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
12
Financial Highlights–Service Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.006 | 0.008 | 0.003 | 0.001 | 0.0001 | 0.0001 |
| Net realized gain | 0.0001 | 0.0001 | 0.0001 | 0.003 | 0.0001 | 0.0001 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.006 | 0.008 | 0.003 | 0.004 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.006) | (0.008) | (0.003) | (0.001) | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | (0.000)1 | (0.000)1 | (0.000)1 | (0.003) | (0.000)1 | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.006) | (0.008) | (0.003) | (0.004) | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.56% | 0.85% | 0.31% | 0.37% | 0.02% | 0.03% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 0.53%3 | 0.53% | 0.53% | 0.31%4 | 0.08% | 0.09% |
| Net investment income | 1.13%3 | 0.82% | 0.30% | 0.05% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.22%3 | 0.27% | 0.38% | 0.55% | 0.78% | 0.76% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $122,868 | $140,179 | $150,916 | $163,198 | $259,239 | $64,173 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.31% after taking into account these expense reductions. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
13
Financial Highlights–Cash II Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.005 | 0.007 | 0.002 | 0.0001 | 0.0001 | 0.0001 |
| Net realized gain (loss) | 0.0001 | (0.000)1 | 0.0001 | 0.003 | 0.0001 | 0.0001 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.005 | 0.007 | 0.002 | 0.003 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.005) | (0.007) | (0.002) | (0.000)1 | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | (0.000)1 | (0.000)1 | (0.000)1 | (0.003) | (0.000)1 | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.005) | (0.007) | (0.002) | (0.003) | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.49% | 0.70% | 0.16% | 0.34% | 0.02% | 0.03% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 0.68%3 | 0.68% | 0.68% | 0.20%4 | 0.08% | 0.09% |
| Net investment income | 0.98%3 | 0.68% | 0.16% | 0.01% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.29%3 | 0.34% | 0.42% | 0.90% | 1.00% | 0.98% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $223,789 | $15,140 | $8,242 | $6,170 | $114,582 | $160,390 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.20% after taking into account these expense reductions. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
14
Financial Highlights–Cash Series Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.003 | 0.003 | 0.0001 | 0.0001 | 0.0001 | 0.0001 |
| Net realized gain | 0.0001 | 0.0001 | 0.0001 | 0.0031 | 0.0001 | 0.0001 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.003 | 0.003 | 0.0001 | 0.0031 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.003) | (0.003) | (0.000)1 | (0.000)1 | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | (0.000)1 | (0.000)1 | (0.000)1 | (0.003)1 | (0.000)1 | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.003) | (0.003) | (0.000)1 | (0.003)1 | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.31% | 0.35% | 0.01% | 0.32% | 0.02% | 0.03% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 1.03%3 | 1.03% | 0.83% | 0.33%4 | 0.08% | 0.09% |
| Net investment income | 0.63%3 | 0.32% | 0.01% | 0.01% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.34%3 | 0.40% | 0.70% | 1.18% | 1.40% | 1.38% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $37,208 | $38,713 | $51,752 | $55,103 | $108,116 | $89,717 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.33% after taking into account these expense reductions. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
15
Financial Highlights–Capital Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.006 | 0.010 | 0.005 | 0.001 | 0.0001 | 0.0001 |
| Net realized gain (loss) | 0.0001 | (0.000)1 | (0.000)1 | 0.003 | 0.0001 | 0.0001 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.006 | 0.010 | 0.005 | 0.004 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.006) | (0.010) | (0.005) | (0.001) | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | (0.000)1 | (0.000)1 | (0.000)1 | (0.003) | (0.000)1 | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.006) | (0.010) | (0.005) | (0.004) | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.64% | 1.00% | 0.46% | 0.43% | 0.02% | 0.03% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 0.38%3 | 0.38% | 0.38% | 0.24%4 | 0.08% | 0.09% |
| Net investment income | 1.28%3 | 0.99% | 0.49% | 0.07% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.23%3 | 0.29% | 0.36% | 0.52% | 0.65% | 0.63% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $152,228 | $130,769 | $89,382 | $29,806 | $142,057 | $156,390 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.24% after taking into account these expense reductions. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
16
Statement of Assets and Liabilities
April 30, 2019 (unaudited)
| Assets: | ||
| Investment in securities, at amortized cost and fair value | $1,000,737,137 | |
| Cash | 290,597 | |
| Income receivable | 4,794,896 | |
| Receivable for shares sold | 143,526 | |
| TOTAL ASSETS | 1,005,966,156 | |
| Liabilities: | ||
| Payable for shares redeemed | $157,634 | |
| Income distribution payable | 61,865 | |
| Payable for investment adviser fee (Note 4) | 4,520 | |
| Payable for administrative fees (Note 4) | 2,188 | |
| Payable for transfer agent fee | 44,266 | |
| Payable for portfolio accounting fees | 43,735 | |
| Payable for distribution services fee (Note 4) | 42,428 | |
| Payable for other service fees (Note 4) | 89,314 | |
| Accrued expenses (Note 4) | 7,100 | |
| TOTAL LIABILITIES | 453,050 | |
| Net assets for 1,005,510,826 shares outstanding | $1,005,513,106 | |
| Net Assets Consist of: | ||
| Paid-in capital | $1,005,510,791 | |
| Total distributable earnings | 2,315 | |
| TOTAL NET ASSETS | $1,005,513,106 | |
| Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
| Wealth Shares: | ||
| $469,419,848 ÷ 469,418,836 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Service Shares: | ||
| $122,867,955 ÷ 122,867,673 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Cash II Shares: | ||
| $223,789,227 ÷ 223,788,681 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Cash Series Shares: | ||
| $37,207,622 ÷ 37,207,538 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Capital Shares: | ||
| $152,228,454 ÷ 152,228,098 shares outstanding, no par value, unlimited shares authorized | $1.00 |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
17
Statement of Operations
Six Months Ended April 30, 2019 (unaudited)
| Investment Income: | |||
| Interest | $7,913,276 | ||
| Expenses: | |||
| Investment adviser fee (Note 4) | $1,426,914 | ||
| Administrative fee (Note 4) | 379,464 | ||
| Custodian fees | 16,337 | ||
| Transfer agent fee (Note 2) | 253,186 | ||
| Directors'/Trustees' fees (Note 4) | 3,073 | ||
| Auditing fees | 10,960 | ||
| Legal fees | 10,929 | ||
| Portfolio accounting fees | 87,761 | ||
| Distribution services fee (Note 4) | 318,898 | ||
| Other service fees (Notes 2 and 4) | 535,370 | ||
| Share registration costs | 42,312 | ||
| Printing and postage | 16,773 | ||
| Miscellaneous (Note 4) | 4,542 | ||
| TOTAL EXPENSES | 3,106,519 | ||
| Waivers and Reimbursement: | |||
| Waiver of investment adviser fee (Note 4) | $(653,387) | ||
| Waivers/reimbursement of other operating expenses (Notes 2 and 4) | (313,317) | ||
| TOTAL WAIVERS AND REIMBURSEMENT | (966,704) | ||
| Net expenses | 2,139,815 | ||
| Net investment income | 5,773,461 | ||
| Change in net assets resulting from operations | $5,773,461 |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
18
Statement of Changes in Net Assets
| Six Months Ended (unaudited) 4/30/2019 | Year Ended 10/31/2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations: | ||
| Net investment income | $5,773,461 | $5,300,843 |
| Net realized gain | — | 3,755 |
| CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 5,773,461 | 5,304,598 |
| Distributions to Shareholders: | ||
| Wealth Shares | (3,069,982) | (2,851,723) |
| Service Shares | (780,169) | (1,249,846) |
| Cash II Shares | (966,334) | (66,475) |
| Cash Series Shares | (127,508) | (154,594) |
| Capital Shares | (834,690) | (1,098,975) |
| CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (5,778,683) | (5,421,613) |
| Share Transactions: | ||
| Proceeds from sale of shares | 1,123,397,475 | 1,520,329,634 |
| Net asset value of shares issued to shareholders in payment of distributions declared | 5,360,352 | 4,707,102 |
| Cost of shares redeemed | (820,364,177) | (1,285,061,279) |
| CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 308,393,650 | 239,975,457 |
| Change in net assets | 308,388,428 | 239,858,442 |
| Net Assets: | ||
| Beginning of period | 697,124,678 | 457,266,236 |
| End of period | $1,005,513,106 | $697,124,678 |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
19
Notes to Financial Statements
April 30, 2019 (unaudited)
1. ORGANIZATION
Money Market Obligations Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of 20 portfolios. The financial statements included herein are only those of Federated California Municipal Cash Trust (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers five classes of shares: Wealth Shares, Service Shares, Cash II Shares, Cash Series Shares and Capital Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to provide current income exempt from federal regular income tax and the personal income taxes imposed by the state of California consistent with stability of principal. Interest income from the Fund's investments may be subject to the federal AMT for individuals.
The Fund operates as a retail money market fund. As a retail money market fund, the Fund: (1) will generally continue to use amortized cost to value its portfolio securities and transact at a stable $1.00 net asset value (NAV); (2) has adopted policies and procedures reasonably designed to limit investments in the Fund to accounts beneficially owned by natural persons as required for a retail money market fund by Rule 2a-7 under the Act; and (3) has adopted policies and procedures to impose liquidity fees on redemptions and/or temporary redemption gates in the event that the Fund's weekly liquid assets were to fall below a designated threshold, if the Fund's Trustees determine such liquidity fees or redemption gates are in the best interests of the Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
Securities are valued at amortized cost. Under the amortized cost valuation method, an investment is valued initially at its cost as determined in accordance with GAAP. The Fund then adjusts the amount of interest income accrued each day over the term of the investment to account for any difference between the initial cost of the investment and the amount payable at its maturity. If amortized cost is determined not to approximate fair value, the value of the portfolio securities will be determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share.
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The Trustees have ultimate responsibility for determining the fair value of investments. The Trustees have appointed a valuation committee (“Valuation Committee”) comprised of officers of the Fund, Federated Investment Management Company (the “Adviser”) and certain of the Adviser's affiliated companies to assist in determining fair value of securities and in overseeing the comparison of amortized cost to market-based value. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of monitoring the relationship of market-based value and amortized cost. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs and assumptions), and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared daily and paid monthly. Investment income, realized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. Amortization/accretion of premium and discount is included in investment income. The detail of the total fund expense waivers and reimbursements of $966,704 is disclosed in various locations in this Note 2 and Note 4. For the six months ended April 30, 2019, transfer agent fees for the Fund were as follows:
| Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
| Wealth Shares | $8,694 | $(4,273) |
| Service Shares | 59,300 | (57,922) |
| Cash II Shares | 100,399 | (98,487) |
| Cash Series Shares | 21,777 | (21,344) |
| Capital Shares | 63,016 | (61,716) |
| TOTAL | $253,186 | $(243,742) |
Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Other Service Fees
The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund's Wealth Shares, Service Shares, Cash II Shares, Cash Series Shares and Capital Shares to unaffiliated financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms
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described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees. In addition, unaffiliated third-party financial intermediaries may waive other service fees. This waiver can be modified or terminated at any time. For the six months ended April 30, 2019, other service fees for the Fund were as follows:
| Other Service Fees Incurred | |
| Service Shares | $173,129 |
| Cash II Shares | 246,381 |
| Cash Series Shares | 50,717 |
| Capital Shares | 65,143 |
| TOTAL | $535,370 |
For the six months ended April 30, 2019, the Fund's Wealth Shares did not incur other service fees.
Federal Taxes
It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the six months ended April 30, 2019, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of April 30, 2019, tax years 2015 through 2018 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.
When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Restricted Securities
The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at amortized cost in accordance with Rule 2a-7 under the Act.
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Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. The Fund applies investment company accounting and reporting guidance.
3. SHARES OF BENEFICIAL INTEREST
The following tables summarize share activity:
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Wealth Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 494,993,390 | $494,993,390 | 793,990,467 | $793,990,467 |
| Shares issued to shareholders in payment of distributions declared | 2,823,835 | 2,823,835 | 2,428,846 | 2,428,846 |
| Shares redeemed | (400,718,956) | (400,718,956) | (581,029,754) | (581,029,754) |
| NET CHANGE RESULTING FROM WEALTH SHARE TRANSACTIONS | 97,098,269 | $97,098,269 | 215,389,559 | $215,389,559 |
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Service Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 125,084,724 | $125,084,724 | 266,596,451 | $266,596,451 |
| Shares issued to shareholders in payment of distributions declared | 616,181 | 616,181 | 995,909 | 995,909 |
| Shares redeemed | (143,010,872) | (143,010,872) | (278,290,000) | (278,290,000) |
| NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS | (17,309,967) | $(17,309,967) | (10,697,640) | $(10,697,640) |
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Cash II Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 323,851,568 | $323,851,568 | 51,679,593 | $51,679,593 |
| Shares issued to shareholders in payment of distributions declared | 964,310 | 964,310 | 65,516 | 65,516 |
| Shares redeemed | (116,166,698) | (116,166,698) | (44,845,496) | (44,845,496) |
| NET CHANGE RESULTING FROM CASH II SHARE TRANSACTIONS | 208,649,180 | $208,649,180 | 6,899,613 | $6,899,613 |
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| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Cash Series Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 39,844,315 | $39,844,315 | 82,594,934 | $82,594,934 |
| Shares issued to shareholders in payment of distributions declared | 126,284 | 126,284 | 152,128 | 152,128 |
| Shares redeemed | (41,475,262) | (41,475,262) | (95,772,462) | (95,772,462) |
| NET CHANGE RESULTING FROM CASH SERIES SHARE TRANSACTIONS | (1,504,663) | $(1,504,663) | (13,025,400) | $(13,025,400) |
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Capital Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 139,623,478 | $139,623,478 | 325,468,189 | $325,468,189 |
| Shares issued to shareholders in payment of distributions declared | 829,742 | 829,742 | 1,064,703 | 1,064,703 |
| Shares redeemed | (118,992,389) | (118,992,389) | (285,123,567) | (285,123,567) |
| NET CHANGE RESULTING FROM CAPITAL SHARE TRANSACTIONS | 21,460,831 | $21,460,831 | 41,409,325 | $41,409,325 |
| NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 308,393,650 | $308,393,650 | 239,975,457 | $239,975,457 |
4. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.30% of the Fund's average daily net assets. Prior to February 28, 2018, the annual advisory fee was 0.40% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund. For the six months ended April 30, 2019, the Adviser voluntarily waived $653,387 of its fee and reimbursed $243,742 of transfer agent fees.
Administrative Fee
Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below:
| Administrative Fee | Average Daily Net Assets of the Investment Complex |
| 0.100% | on assets up to $50 billion |
| 0.075% | on assets over $50 billion |
Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, the annualized fee paid to FAS was 0.080% of average daily net assets of the Fund.
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In addition, FAS may charge certain out-of-pocket expenses to the Fund.
Distribution Services Fee
The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Cash II Shares and Cash Series Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses at the following percentages of average daily net assets annually, to compensate FSC:
| Percentage of Average Daily Net Assets of Class | |
| Cash II Shares | 0.20% |
| Cash Series Shares | 0.60% |
Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, distribution services fees for the Fund were as follows:
| Distribution Services Fees Incurred | Distribution Services Fees Waived | |
| Cash II Shares | $197,105 | $(49,276) |
| Cash Series Shares | 121,793 | (20,299) |
| TOTAL | $318,898 | $(69,575) |
When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended April 30, 2019, FSC retained $216 fees paid by the Fund.
Other Service Fees
For the six months ended April 30, 2019, FSSC received $1,041 of the other service fees disclosed in Note 2.
Expense Limitation
Due to the possibility of changes in market conditions and other factors, there can be no assurance that the level of waivers/reimbursement/reduction of Fund expenses reflected in the financial highlights will be maintained in the future. However, the Adviser and certain of its affiliates (which may include FSC, FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding extraordinary expenses, interest expense and proxy-related expenses paid by the Fund, if any) paid by the Fund's Wealth Shares, Service Shares, Cash II Shares, Cash Series Shares and Capital Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.28%, 0.53%, 0.68%, 1.03% and 0.38% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) March 1, 2020; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.
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Interfund Transactions
During the six months ended April 30, 2019, the Fund engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and amounted to $261,220,000 and $264,180,000, respectively.
Directors'/Trustees' and Miscellaneous Fees
Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Directors'/Trustees' fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
5. CONCENTRATION OF RISK
Since the Fund invests a substantial portion of its assets in issuers located in one state, it will be more susceptible to factors adversely affecting issuers of that state than would be a comparable tax-exempt mutual fund that invests nationally. In order to reduce the credit risk associated with such factors, at April 30, 2019, 51.0% of the securities in the portfolio of investments were backed by letters of credit or bond insurance of various financial institutions and financial guaranty assurance agencies. The largest percentage of investments insured by or supported (backed) by a letter of credit from any one institution or agency, was 9.3% of total investments.
6. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of April 30, 2019, there were no outstanding loans. During the six months ended April 30, 2019, the program was not utilized.
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Shareholder Expense Example (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2018 to April 30, 2019.
ACTUAL EXPENSES
The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, toestimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and anassumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you shouldnot use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
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Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relativetotal costs of owning different funds.
| Beginning Account Value 11/1/2018 | Ending Account Value 4/30/2019 | Expenses Paid During Period1 | |
| Actual: | |||
| Wealth Shares | $1,000 | $1,006.90 | $1.39 |
| Service Shares | $1,000 | $1,005.60 | $2.64 |
| Cash II Shares | $1,000 | $1,004.90 | $3.38 |
| Cash Series Shares | $1,000 | $1,003.10 | $5.12 |
| Capital Shares | $1,000 | $1,006.40 | $1.89 |
| Hypothetical (assuming a 5% return before expenses): | |||
| Wealth Shares | $1,000 | $1,023.40 | $1.40 |
| Service Shares | $1,000 | $1,022.20 | $2.66 |
| Cash II Shares | $1,000 | $1,021.40 | $3.41 |
| Cash Series Shares | $1,000 | $1,019.70 | $5.16 |
| Capital Shares | $1,000 | $1,022.90 | $1.91 |
| 1 | Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
| Wealth Shares | 0.28% |
| Service Shares | 0.53% |
| Cash II Shares | 0.68% |
| Cash Series Shares | 1.03% |
| Capital Shares | 0.38% |
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Evaluation and Approval of Advisory Contract–May 2018
federated california municipal cash trust (the “Fund”)
At its meetings in May 2018, the Fund's Board of Trustees (the “Board”), including a majority of those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the Fund's investment advisory contract for an additional one-year term. The Board's decision regarding the contract reflects the exercise of its business judgment after considering all of the information received on whether to continue the existing arrangements.
The Board had previously appointed a Senior Officer, whose duties included specified responsibilities relating to the process by which advisory fees are to be charged to a fund advised by Federated Investment Management Company (the “Adviser”) or its affiliates (collectively, “Federated”) (each, a “Federated fund”). The Senior Officer's responsibilities included preparing and furnishing to the Board an annual independent written evaluation that covered topics discussed below. In December 2017, the Senior Officer position was eliminated. Notwithstanding the elimination of the Senior Officer position, at the request of the Independent Trustees, the Fund's Chief Compliance Officer (the CCO) furnished to the Board in advance of its May 2018 meetings an independent written evaluation covering substantially the same topics that had been covered in the Senior Officer's written evaluation in prior years. The Board considered the CCO's independent written evaluation (the “CCO Fee Evaluation Report”), along with other information, in evaluating the reasonableness of the Fund's management fee and in deciding to approve the continuation of the investment advisory contract. Consistent with the former Senior Officer position, the CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees.
The Board also considered judicial decisions concerning allegedly excessive investment advisory fees in making its decision. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser's fiduciary duty with respect to its receipt of compensation from a fund: (1) the nature and quality of the services provided by an adviser to a fund and its shareholders (including the performance of the fund, its benchmark and comparable funds); (2) an adviser's cost of providing the services (including the profitability to an adviser of providing advisory services to a fund); (3) the extent to which an adviser may realize “economies of scale” as a fund grows larger and, if such economies of scale exist, whether they have been shared with a fund and its shareholders or the family of funds; (4) any “fall-out” financial benefits that accrue to an adviser because of its relationship with a fund (including
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research services received from brokers that execute fund trades and any fees paid to affiliates of an adviser for services rendered to a fund); (5) comparative fee and expense structures (including a comparison of fees paid to an adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the Adviser or its affiliates for what might be viewed as like services); and (6) the extent of care, conscientiousness and independence with which the fund's board members perform their duties and their expertise (including whether they are fully informed about all facts the board deems relevant to its consideration of an adviser's services and fees). The Board noted that the Securities and Exchange Commission (SEC) disclosure requirements regarding the basis for the Board's approval of the Fund's investment advisory contract generally align with the factors listed above. The Board was aware of these factors and was guided by them in its review of the Fund's investment advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.
The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds. The Independent Trustees were assisted in their deliberations by independent legal counsel.
In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board received detailed information about the Fund and the Federated organization throughout the year, and in connection with its May meetings at which the Board's formal approval of the advisory and subadvisory contracts occurred. In this regard, Federated provided much of this information at each regular meeting of the Board, and furnished additional information specifically in connection with the May meetings. In the months preceding the May meetings, the Board requested and reviewed written materials prepared by Federated in response to requests on behalf of the Independent Trustees encompassing a wide variety of topics. At the May meetings, in addition to meeting in separate sessions of the Independent Trustees without management present, senior management of the Adviser also met with the Independent Trustees and their counsel to discuss the materials presented and such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the advisory and subadvisory contracts. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose.
The Board's consideration of the investment advisory contract included review of the CCO Fee Evaluation Report, accompanying data and additional information covering the following matters among others: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in terms relative to its particular investment program and certain competitor or “peer group” funds and/or other benchmarks, as appropriate) and comments on the
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reasons for performance; the Fund's investment objectives; the Fund's expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to similar and/or competing funds), with due regard for contractual or voluntary expense limitations; the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial and other risks assumed by the Adviser in sponsoring the Fund; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are generally available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.
While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged by other advisers for managing funds with comparable investment programs, the Board has found the use of such comparisons to be relevant to its deliberations. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund's total expense ratio (i.e., gross and net advisory fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated using data supplied by independent fund ranking organizations (the “Peer Group”). The Board received a description of the composition and methodology used to select the Peer Group. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because it is believed that they are more relevant. For example, other mutual funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles. Also, they are the type of investment vehicle, in fact, chosen and maintained by the Fund's investors. The range of their fees and expenses, therefore, appears to be a relevant indicator of what consumers have found to be reasonable in the marketplace in which the Fund competes.
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The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund's fee rates relative to its Peer Group. In this regard, the Board noted that the contractual advisory fee rate was above the median of the relevant Peer Group, but the Board noted the applicable waivers and reimbursements, and that the overall expense structure of the Fund remained competitive in the context of other factors considered by the Board.
For comparison, the CCO reviewed the fees charged by Federated for providing advisory services to products other than the Federated funds (e.g., institutional and separate accounts and third-party unaffiliated mutual funds for which Federated serves as sub-adviser) (referenced to as “Comparable Funds/Accounts”). With respect to Comparable Funds/Accounts other than third-party mutual funds, the CCO concluded that they are inherently different products. Those differences include, but are not limited to, different types of targeted investors; different applicable laws and regulations; different legal structures; different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; and the time spent by portfolio managers and their teams, as well as personnel in the Funds Financial Services, Legal, Compliance and Risk Management departments, in reviewing securities pricing, addressing different administrative responsibilities, addressing different degrees of risk associated with management and a variety of different costs. The CCO also reviewed the differences in the nature of the services required for Federated to manage its proprietary mutual fund business versus managing a discrete pool of assets as a sub-adviser to another institution's mutual fund, and that Federated generally performs significant additional services and assumes substantially greater risk in managing the Fund and other Federated funds than in its role as sub-adviser to an unaffiliated third-party mutual fund. The CCO did not consider the fees for providing advisory services to Comparable Funds/Accounts to be determinative in judging the appropriateness of the Federated funds' advisory fees.
Following such evaluation, and full deliberations, the Board concluded that the fees and expenses of the Fund are reasonable and supported renewal of the Fund's investment advisory contract.
The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of the Adviser and its affiliates dedicated to the Fund. In this regard, the Board evaluated, among other things, the Adviser's personnel, experience, track record, overall reputation and willingness to invest in personnel and infrastructure that benefit the Fund. In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and the Adviser's ability and experience in attracting and retaining qualified personnel to service the Fund. The Board noted the compliance program of the Adviser and the compliance-related resources provided to the Fund by the Adviser, including the Adviser's commitment to
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respond to rulemaking initiatives of the SEC. The Fund's ability to deliver competitive performance when compared to its Peer Group was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund's investment program. The Adviser's ability to execute this program was one of the Board's considerations in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services warrant the continuation of the investment advisory contract.
In evaluating the Fund's investment performance, the Board considered performance results in light of the Fund's investment objective, strategies and risks, as disclosed in the Fund's prospectus. The Board considered detailed investment reports on the Fund's performance that were provided to the Board throughout the year and in connection with the May meetings. The CCO also reviewed information regarding the performance of other mutual funds in the Peer Group, noting the CCO's view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases individual funds may exhibit significant and unique differences in their objectives and management techniques when compared to other funds within a Peer Group.
The Fund's performance was above the median of the relevant Peer Group for the one-year period covered by the CCO Fee Evaluation Report. The Board also considered the relatively tight dispersion of performance data with respect to the Fund and its Peer Group.
Following such evaluation, and full deliberations, the Board concluded that the performance of the Fund supported renewal of the Fund's investment advisory contract.
The Board also received financial information about Federated, including information regarding the compensation and ancillary (or “fall-out”) benefits Federated derived from its relationships with the Federated funds. This information covered not only the fees under the investment advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator and distributor). In this regard, the Board considered that certain Federated subsidiaries provide distribution and shareholder services to the Federated funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The information also detailed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a Federated fund to be competitive in the marketplace, the Adviser and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to Federated fund investors and/or indicated to the Board their intention to do so in the future. Moreover, the Board receives regular reporting as to the institution, adjustment or elimination of these voluntary waivers.
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In 2018, the Board approved a reduction of 10 basis points in the contractual advisory fee.
Federated furnished information, requested by the CCO, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the CCO. The CCO noted that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs continues to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable, since a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated fund and may produce unintended consequences. The allocation information, including the CCO's view that fund-by-fund estimations may be unreliable, was considered in the evaluation by the Board.
The Board and the CCO also reviewed information compiled by Federated comparing its profitability information to other publicly held fund management companies, including information regarding profitability trends over time. In this regard, the CCO concluded that Federated's profit margins did not appear to be excessive. The CCO also noted that Federated appeared financially sound, with the resources necessary to fulfill its obligations under its contracts with the Fund.
The CCO Fee Evaluation Report also discussed the notion of possible realization of “economies of scale” as a fund grows larger. In this regard, the Board considered that the Adviser has made significant and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, shareholder services, compliance, internal audit and risk management functions, as well as systems technology (including technology relating to cybersecurity) and that the benefits of these efforts (as well as any economies of scale, should they exist) were likely to be shared with the Federated fund family as a whole. The Board noted that the Adviser's investments in these areas are extensive. In addition, the Board considered that the Adviser and its affiliates have frequently waived fees and/or reimbursed expenses and that this has allowed fund shareholders to share potential economies of scale with shareholders. The Board also considered that such waivers and reimbursements can provide protection from an increase in expenses if a Federated fund's assets decline. Federated, as it does throughout the year, and specifically in connection with the Board's review of the advisory and subadvisory contracts, furnished information relative to revenue sharing or adviser-paid fees. Federated and the CCO noted that this information should be viewed to determine if there was an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, and should not be viewed to determine the appropriateness of advisory fees because it would represent marketing and distribution expenses. The Board also noted the absence of any applicable
Semi-Annual Shareholder Report
34
regulatory or industry guidelines on this subject, which (as discussed in the CCO Fee Evaluation Report) is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with “breakpoints” that serve to reduce the fee as a fund attains a certain size.
The CCO stated that his observations and the information accompanying the CCO Fee Evaluation Report supported a finding by the Board that the management fee for the Fund was reasonable. Under these circumstances, no objection was raised to the continuation of, the Fund's investment advisory contract. The CCO also recognized that the Board's evaluation of the Federated funds' advisory and subadvisory arrangements is a continuing and on-going process that is informed by the information that the Board requests and receives from management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its on-going oversight of the Federated funds.
In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an investment advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the investment advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund. The Board concluded that, in light of the factors summarized above, including the nature, quality and scope of the services provided to the Fund by the Adviser and its affiliates, continuation of the investment advisory contract was appropriate.
The Board based its decision to approve the investment advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the continuation of the contract reflects its view that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing arrangement.
Semi-Annual Shareholder Report
35
Voting Proxies on Fund Portfolio Securities
A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with the Fund and share class name at www.FederatedInvestors.com/FundInformation. Form N-PX filings are also available at the SEC's website at www.sec.gov.
Portfolio Schedule
The Fund files with the SEC a complete schedule of its portfolio holdings as of the close of each month on “Form N-MFP.” Form N-MFP is available on the SEC's website at www.sec.gov. You may access Form N-MFP via the link to the Fund and share class name at www.FederatedInvestors.com.
Semi-Annual Shareholder Report
36
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
This Report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called “householding”), as permitted by applicable rules. The Fund's “householding” program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the “householding” program. The Fund is also permitted to treat a shareholder as having given consent (“implied consent”) if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to “household” at least sixty (60) days before it begins “householding” and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to “opt out” of “householding.” Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of “householding” at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.
Semi-Annual Shareholder Report
37
Federated California Municipal Cash Trust
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedInvestors.com
or call 1-800-341-7400.
or call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 60934N369
CUSIP 60934N351
CUSIP 60934N179
CUSIP 608919403
CUSIP 608919502
CUSIP 60934N351
CUSIP 60934N179
CUSIP 608919403
CUSIP 608919502
0041609 (6/19)
Federated is a registered trademark of Federated Investors, Inc.
2019 ©Federated Investors, Inc.
2019 ©Federated Investors, Inc.
Semi-Annual Shareholder Report
April 30, 2019
| Share Class | Ticker | Wealth | CAIXX |
Federated California Municipal Cash Trust
A Portfolio of Money Market Obligations Trust
IMPORTANT NOTICE REGARDING REPORT DELIVERY
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4. Your election to receive reports in paper will apply to all funds held with the Fund complex or your financial intermediary.
The Fund is a Retail Money Market Fund and is only available for investment to accounts beneficially owned by natural persons.
Not FDIC Insured ■ May Lose Value ■ No Bank Guarantee
Portfolio of Investments Summary Tables (unaudited)
At April 30, 2019, the Fund's portfolio composition1 was as follows:
| Security Type | Percentage of Total Net Assets |
| Variable Rate Demand Instruments | 60.5% |
| Commercial Paper | 28.1% |
| Municipal Notes | 10.9% |
| Other Assets and Liabilities—Net2 | 0.5% |
| TOTAL | 100.0% |
At April 30, 2019, the Fund's effective maturity schedule3 was as follows:
| Securities With an Effective Maturity of: | Percentage of Total Net Assets |
| 1-7 Days | 62.6% |
| 8-30 Days | 3.6% |
| 31-90 Days | 26.2% |
| 91-180 Days | 7.1% |
| 181 Days or more | 0.0% |
| Other Assets and Liabilities—Net2 | 0.5% |
| TOTAL | 100.0% |
| 1 | See the Fund's Prospectus and Statement of Additional Information for a description of these investments. |
| 2 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
| 3 | Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940, which regulates money market mutual funds. |
Semi-Annual Shareholder Report
1
Portfolio of Investments
April 30, 2019 (unaudited)
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—99.5% | ||
| California—99.5% | |||
| $1,140,000 | ABAG Finance Authority for Non-Profit Corporations, CA (Ecology Action of Santa Cruz), (Series 2010) Weekly VRDNs, (Comerica Bank LOC), 2.350%, 5/2/2019 | $1,140,000 | |
| 7,080,000 | Alameda Corridor Transportation Authority, CA, Tender Option Bond Trust Certificates (Series 2018-XL0085) Weekly VRDNs, (Barclays Bank PLC LIQ)/(Barclays Bank PLC LOC), 2.300%, 5/2/2019 | 7,080,000 | |
| 835,000 | Alameda County, CA IDA Recovery Zone Facility (Dale Hardware, Inc.), (Series 2010) Weekly VRDNs, (Comerica Bank LOC), 2.320%, 5/2/2019 | 835,000 | |
| 6,200,000 | Alameda County, CA Joint Powers Authority (Alameda County, CA), (Series A), CP, (FHLB of San Francisco LOC), 1.600%, Mandatory Tender 5/2/2019 | 6,200,000 | |
| 9,960,000 | Alvord, CA USD, Tender Option Bond Trust Certificates (2016-XG0089) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Credit Suisse AG LIQ), 2.400%, 5/2/2019 | 9,960,000 | |
| 3,365,000 | Banning, CA USD, Tender Option Bond Trust Certificates (Series 2017-XF2440) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Morgan Stanley Bank, N.A. LIQ), 2.350%, 5/2/2019 | 3,365,000 | |
| 9,000,000 | Bay Area Toll Authority, CA, Tender Option Bond Trust Receipts (Series 2017-ZM0542) Weekly VRDNs, (Bank of America N.A. LIQ), 2.300%, 5/2/2019 | 9,000,000 | |
| 4,000,000 | Beaumont, CA Public Improvement Authority, Tender Option Bond Trust Certificates (Series 2018-ZF2715) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Morgan Stanley Bank, N.A. LIQ), 2.350%, 5/2/2019 | 4,000,000 | |
| 3,320,000 | Calexico, CA USD, Tender Option Bond Trust Certificates (2017-XG0118) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Morgan Stanley Bank, N.A. LIQ), 2.350%, 5/2/2019 | 3,320,000 | |
| 5,655,000 | California Enterprise Development Authority (Alvarado Street Bakery), (Series 2007) Weekly VRDNs, (U.S. Bank, N.A. LOC), 2.420%, 5/2/2019 | 5,655,000 | |
| 5,620,000 | California Enterprise Development Authority (Humane Society Silicon Valley), (Series 2008) Weekly VRDNs, (FHLB of San Francisco LOC), 2.420%, 5/2/2019 | 5,620,000 | |
| 6,575,000 | California Enterprise Development Authority (Ramar International Corporation), (Series 2008A) Weekly VRDNs, (Comerica Bank LOC), 2.320%, 5/2/2019 | 6,575,000 | |
| 12,200,000 | California Enterprise Development Authority (Regional Properties, Inc.), (Series 2010: Recovery Zone Facility) Weekly VRDNs, (FHLB of San Francisco LOC), 2.420%, 5/2/2019 | 12,200,000 | |
| 35,000,000 | California Health Facilities Financing Authority (Dignity Health (Catholic Healthcare West)), Golden Blue (Series 2017-004) VRENs, (Barclays Bank PLC LIQ)/(Barclays Bank PLC LOC), 2.420%, 5/2/2019 | 35,000,000 |
Semi-Annual Shareholder Report
2
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| California—continued | |||
| $20,000,000 | California Health Facilities Financing Authority (Kaiser Permanente), (Series 2006D), CP, 1.780%, Mandatory Tender 8/8/2019 | $20,000,000 | |
| 2,500,000 | California Health Facilities Financing Authority (Kaiser Permanente), RBC Muni Products (Series G-44) TOBs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.450%, Optional Tender 5/1/2019 | 2,500,000 | |
| 5,000,000 | California Health Facilities Financing Authority (Kaiser Permanente), Tender Option Bond Trust Receipts (Series 2018-XF0608) Weekly VRDNs, (TD Bank, N.A. LIQ), 2.300%, 5/2/2019 | 5,000,000 | |
| 4,180,000 | California Health Facilities Financing Authority (Lucile Salter Packard Children's Hospital at Stanford), Tender Option Bond Trust Receipts (2016-XF0451) Weekly VRDNs, (Bank of America N.A. LIQ), 2.300%, 5/2/2019 | 4,180,000 | |
| 2,000,000 | California Health Facilities Financing Authority (Providence St. Joseph Health), Revenue Bonds (Series 2013C) TOBs, 5.000%, Mandatory Tender 10/15/2019 | 2,037,809 | |
| 2,295,000 | California Health Facilities Financing Authority (Providence St. Joseph Health), Tender Option Bond Trust Receipts (Series 2018-XM0696) Weekly VRDNs, (Bank of America N.A. LIQ), 2.300%, 5/2/2019 | 2,295,000 | |
| 8,625,000 | California Health Facilities Financing Authority (Sutter Health), Tender Option Bond Trust Certificates (2017-XF2417) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.310%, 5/2/2019 | 8,625,000 | |
| 4,765,000 | California Infrastructure & Economic Development Bank (Saddleback Valley Christian Schools), (Series 2010A) Weekly VRDNs, (FHLB of San Francisco LOC), 2.360%, 5/2/2019 | 4,765,000 | |
| 9,715,000 | California Infrastructure & Economic Development Bank (St. Margaret of Scotland Episcopal School), (Series 2008) Monthly VRDNs, (FHLB of San Francisco LOC), 1.750%, 5/1/2019 | 9,715,000 | |
| 3,795,000 | California Infrastructure & Economic Development Bank (Tobinworld), (Series 2007A) Weekly VRDNs, (Comerica Bank LOC), 2.400%, 5/2/2019 | 3,795,000 | |
| 5,910,000 | California Infrastructure & Economic Development Bank (University of California (The Regents of)), Series 2019-XF0748 Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.300%, 5/2/2019 | 5,910,000 | |
| 1,860,000 | California Municipal Finance Authority (High Desert Partnership in Academic Excellence Foundation, Inc.), (Series 2012A) Weekly VRDNs, (MUFG Union Bank, N.A. LOC), 2.400%, 5/2/2019 | 1,860,000 | |
| 3,100,000 | California PCFA (Air Products & Chemicals, Inc.), (Series 1997B) Daily VRDNs, 2.150%, 5/1/2019 | 3,100,000 | |
| 780,000 | California PCFA (Mission Trail Waste Systems, Inc.), (Series 2010A) Weekly VRDNs, (Comerica Bank LOC), 2.320%, 5/1/2019 | 780,000 | |
| 14,720,000 | California State Department of Water Resources Power Supply Program, (Series L), 5.000%, 5/1/2019 | 14,720,000 | |
| 5,755,000 | California State Department of Water Resources, (Series 1), CP, 1.610%, Mandatory Tender 5/6/2019 | 5,755,000 | |
| 9,133,000 | California State Department of Water Resources, (Series 1), CP, 1.650%, Mandatory Tender 5/2/2019 | 9,133,000 |
Semi-Annual Shareholder Report
3
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| California—continued | |||
| $4,500,000 | California State Department of Water Resources, (Series 2), CP, 1.530%, Mandatory Tender 5/22/2019 | $4,500,000 | |
| 5,000,000 | California State Department of Water Resources, (Series 2), CP, 1.900%, Mandatory Tender 6/13/2019 | 5,000,000 | |
| 2,235,000 | California State University (The Trustees of), Tender Option Bond Trust Receipts (Series 2018-ZF0673) Weekly VRDNs, (Bank of America N.A. LIQ), 2.300%, 5/2/2019 | 2,235,000 | |
| 1,800,000 | California State University (The Trustees of), Tender Option Bond Trust Receipts (Series 2019-XF0740) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.280%, 5/2/2019 | 1,800,000 | |
| 6,000,000 | California State University Institute, (Series A), CP, (State Street Bank and Trust Co. LOC)/(Wells Fargo Bank, N.A. LOC), 1.700%, Mandatory Tender 6/5/2019 | 6,000,000 | |
| 24,500,000 | California State, (Series 2003C-1) Weekly VRDNs, (TD Bank, N.A. LOC), 2.250%, 5/2/2019 | 24,500,000 | |
| 20,000,000 | California State, (Series 2005 A2-1) Weekly VRDNs, (Sumitomo Mitsui Banking Corp. LOC), 2.270%, 5/1/2019 | 20,000,000 | |
| 5,000,000 | California State, (Series 2011A-2), CP, (Royal Bank of Canada LOC), 1.550%, Mandatory Tender 6/4/2019 | 5,000,000 | |
| 5,490,000 | California State, (Series A-6), CP, (Bank of America N.A. LOC), 1.800%, Mandatory Tender 6/3/2019 | 5,490,000 | |
| 2,500,000 | California State, RBC Muni Products (Series G-68) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 2,500,000 | |
| 2,000,000 | California State, RBC Muni Products, Inc., Trust Floater Certificates (Series G-1) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 2,000,000 | |
| 4,000,000 | California State, RBC Muni Products, Inc., Trust Floater Certificates (Series G-2) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 4,000,000 | |
| 2,220,000 | California Statewide Communities Development Authority (Cruzio Holding Company, LLC), (Series 2010: Recovery Zone Facility) Weekly VRDNs, (Comerica Bank LOC), 2.350%, 5/2/2019 | 2,220,000 | |
| 5,045,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2004E), CP, 1.600%, Mandatory Tender 6/11/2019 | 5,045,000 | |
| 7,455,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2004I), CP, 1.820%, Mandatory Tender 5/9/2019 | 7,455,000 | |
| 15,000,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2004K), CP, 1.600%, Mandatory Tender 6/11/2019 | 15,000,000 | |
| 6,230,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2004K), CP, 1.800%, Mandatory Tender 5/3/2019 | 6,230,000 |
Semi-Annual Shareholder Report
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| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| California—continued | |||
| $15,000,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2008B), CP, 1.700%, Mandatory Tender 7/16/2019 | $15,000,000 | |
| 20,000,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2008C), CP, 1.650%, Mandatory Tender 9/5/2019 | 20,000,000 | |
| 10,000,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2008C), CP, 1.770%, Mandatory Tender 8/7/2019 | 10,000,000 | |
| 10,000,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2009 B-6), CP, 1.750%, Mandatory Tender 6/5/2019 | 10,000,000 | |
| 18,000,000 | California Statewide Communities Development Authority (Kaiser Permanente), (Series 2009B-1), CP, 1.730%, Mandatory Tender 7/11/2019 | 18,000,000 | |
| 23,340,000 | California Statewide Communities Development Authority (Kaiser Permanente), Tender Option Bond Trust Receipts (Series 2015-ZF0199) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.300%, 5/2/2019 | 23,340,000 | |
| 6,465,000 | California Statewide Communities Development Authority (Pacific Collegiate Foundation), (Series 2016) Weekly VRDNs, (Comerica Bank LOC), 2.350%, 5/2/2019 | 6,465,000 | |
| 1,295,000 | California Statewide Communities Development Authority (Penny Lane Centers), (Series 2008) Weekly VRDNs, (U.S. Bank, N.A. LOC), 2.340%, 5/2/2019 | 1,295,000 | |
| 5,600,000 | California Statewide Communities Development Authority MFH (Beaumont CA Leased Housing Associates I, LP), (2010 Series B: Mountain View Apartments) Weekly VRDNs, (FHLMC LOC), 2.380%, 5/2/2019 | 5,600,000 | |
| 39,225,000 | California Statewide Communities Development Authority MFH (Uptown Newport Building Owner, LP), (2017 Series BB: Uptown Newport Apartments) Weekly VRDNs, (FHLB of Des Moines LOC)/(FHLB of San Francisco LOC), 2.360%, 5/2/2019 | 39,225,000 | |
| 4,050,000 | California Statewide Communities Development Authority, (Series 2010A: Gas Supply Variable Rate Revenue Bonds) TOBs, (GTD by Royal Bank of Canada)/(Royal Bank of Canada LIQ), 2.400%, Optional Tender 5/1/2019 | 4,050,000 | |
| 25,625,000 | California Statewide Communities Development Authority, (Series 2010B: Gas Supply Variable Rate Revenue Bonds) TOBs, (GTD by Royal Bank of Canada)/(Royal Bank of Canada LIQ), 2.400%, Optional Tender 5/1/2019 | 25,625,000 | |
| 7,500,000 | Central Basin Municipal Water District, CA, Tender Option Bond Trust Certificates (2016-XG0038) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Morgan Stanley Bank, N.A. LIQ), 2.400%, 5/2/2019 | 7,500,000 | |
| 3,600,000 | Central, CA Union High School District, Tender Option Bond Trust Receipts (Series 2019-XF0759) Weekly VRDNs, (Toronto Dominion Bank LIQ), 2.340%, 5/2/2019 | 3,600,000 |
Semi-Annual Shareholder Report
5
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| California—continued | |||
| $3,040,000 | Central, CA USD, Tender Option Bond Trust Receipts (Series 2019-XF0758) Weekly VRDNs, (Toronto Dominion Bank LIQ), 2.340%, 5/2/2019 | $3,040,000 | |
| 5,000,000 | Coast CCD, CA, (Series 2018 G-7) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 5,000,000 | |
| 5,705,000 | Coast CCD, CA, Tender Option Bond Trust Receipt (2018-XM0869) Weekly VRDNs, (Royal Bank of Canada LIQ), 2.300%, 5/2/2019 | 5,705,000 | |
| 4,000,000 | Corona-Norco, CA USD, RBC Muni Products (Series G-64) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 4,000,000 | |
| 4,655,000 | Davis Joint USD, CA, Tender Option Bond Trust Certificates (Series 2019-XM0730) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Barclays Bank PLC LIQ), 2.350%, 5/2/2019 | 4,655,000 | |
| 9,890,000 | East Side, CA Union High School District, Stage Trust (Series 2011-120C) TOBs, (GTD by Wells Fargo Bank, N.A.)/(Wells Fargo Bank, N.A. LIQ), 2.570%, Optional Tender 7/25/2019 | 9,890,000 | |
| 2,105,000 | Elk Grove, CA USD, Tender Option Bond Trust Receipts (Series 2017-XG0127) Weekly VRDNs, (Bank of America N.A. LIQ), 2.310%, 5/2/2019 | 2,105,000 | |
| 2,000,000 | Escondido, CA, RBC Muni Products (Series G-77) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 2,000,000 | |
| 32,340,000 | Fairfield-Suisun, CA USD, Solar Eclipse (Series 2016-0002) Daily VRDNs, (U.S. Bank, N.A. LIQ), 2.250%, 5/1/2019 | 32,340,000 | |
| 3,425,000 | Fremont, CA Union High School District, Tender Option Bond Trust Receipts (Series 2018-XF0647) Weekly VRDNs, (TD Bank, N.A. LIQ), 2.300%, 5/2/2019 | 3,425,000 | |
| 2,500,000 | Grossmont-Cuyamaca, CA CCD, Tender Option Bond Trust Receipts (2018-XF0669) Weekly VRDNs, (Royal Bank of Canada LIQ), 2.310%, 5/2/2019 | 2,500,000 | |
| 2,000,000 | Grossmont-Cuyamaca, CA CCD, Tender Option Bond Trust Receipts (Series 2018-XG0188) Weekly VRDNs, (Royal Bank of Canada LIQ), 2.310%, 5/2/2019 | 2,000,000 | |
| 22,060,000 | Hayward, CA USD, Tender Option Bond Trust Receipts (2017-XF0545) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Bank of America N.A. LIQ), 2.310%, 5/2/2019 | 22,060,000 | |
| 1,515,000 | Hollister, CA Redevelopment Agency (San Benito County Community Services Development Corp.), (Series 2004) Weekly VRDNs, (MUFG Union Bank, N.A. LOC), 2.400%, 5/2/2019 | 1,515,000 | |
| 3,590,000 | Imperial Irrigation District, CA, Tender Option Bond Trust Receipts (Series 2018-XM0611) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.300%, 5/2/2019 | 3,590,000 | |
| 4,000,000 | Los Angeles County, CA Capital Asset Leasing Corporation, (Series A), CP, (Bank of the West, San Francisco, CA LOC), 1.780%, Mandatory Tender 6/26/2019 | 4,000,000 | |
| 5,000,000 | Los Angeles County, CA TRANs, 4.000%, 6/28/2019 | 5,019,167 |
Semi-Annual Shareholder Report
6
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| California—continued | |||
| $10,000,000 | Los Angeles, CA Department of Water & Power (Electric/Power System), CP, 1.590%, Mandatory Tender 5/9/2019 | $10,000,000 | |
| 3,300,000 | Los Angeles, CA Department of Water & Power (Electric/Power System), Tender Option Bond Trust Receipts (Series 2017-XF0570) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.280%, 5/2/2019 | 3,300,000 | |
| 7,520,000 | Los Angeles, CA Department of Water & Power (Electric/Power System), Tender Option Bond Trust Receipts (Series 2018-XF0732) Weekly VRDNs, (Toronto Dominion Bank LIQ), 2.300%, 5/2/2019 | 7,520,000 | |
| 3,000,000 | Los Angeles, CA Department of Water & Power (Water Works/System), Tender Option Bond Trust Receipts (Series 2017-XG0121) Weekly VRDNs, (Bank of America N.A. LIQ), 2.300%, 5/2/2019 | 3,000,000 | |
| 35,695,000 | Los Angeles, CA TRANs, 4.000%, 6/27/2019 | 35,824,161 | |
| 2,885,000 | Los Angeles, CA USD, Tender Option Bond Trust Receipts (Series 2018-XM0703) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.300%, 5/2/2019 | 2,885,000 | |
| 5,000,000 | Los Angeles, CA USD, Tender Option Bond Trust Receipts (Series 2018-ZM0590) Weekly VRDNs, (Bank of America N.A. LIQ), 2.320%, 5/2/2019 | 5,000,000 | |
| 4,985,000 | Lucia Mar, CA USD, Tender Option Bond Trust Receipts (Series 2018-XG0181) Weekly VRDNs, (Bank of America N.A. LIQ), 2.310%, 5/2/2019 | 4,985,000 | |
| 6,670,000 | Manteca, CA USD, Tender Option Bond Trust Certificates (2015-ZM0093) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.370%, 5/2/2019 | 6,670,000 | |
| 10,000,000 | Nuveen California AMT-Free Quality Municipal Income Fund, (Series 6) Weekly VRDPs, (Sumitomo Mitsui Banking Corp. LIQ), 2.310%, 5/2/2019 | 10,000,000 | |
| 4,970,000 | Ontario-Montclair, CA School District, Tender Option Bond Trust Certificates (Series 2019-XF2805) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.330%, 5/2/2019 | 4,970,000 | |
| 2,505,000 | Oxnard, CA School District, (Series 2018 G-8) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 2,505,000 | |
| 1,190,000 | Pittsburg, CA USD, Tender Option Bond Trust Receipts (Series 2017-XF0578) Weekly VRDNs, (TD Bank, N.A. LIQ), 2.350%, 5/2/2019 | 1,190,000 | |
| 17,690,000 | Pomona, CA USD, Tender Option Bond Trust Certificates (Series 2017-XF2446) Weekly VRDNs, (Build America Mutual Assurance INS)/(Citibank N.A., New York LIQ), 2.350%, 5/2/2019 | 17,690,000 | |
| 7,500,000 | Riverside County, CA Public Financing Authority (Riverside County, CA), Tender Option Bond Trust Receipt (2017-ZF0538) Weekly VRDNs, (Royal Bank of Canada LIQ), 2.400%, 5/2/2019 | 7,500,000 | |
| 7,500,000 | Sacramento, CA Municipal Utility District, (Subseries K-1), CP, (State Street Bank and Trust Co. LOC), 1.580%, Mandatory Tender 7/1/2019 | 7,500,000 | |
| 18,800,000 | Sacramento, CA Municipal Utility District, (Subseries K-1), CP, (State Street Bank and Trust Co. LOC), 1.600%, Mandatory Tender 7/3/2019 | 18,800,000 |
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7
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| California—continued | |||
| $10,000,000 | Sacramento, CA Municipal Utility District, (Subseries L-1), CP, (Barclays Bank PLC LOC), 1.600%, Mandatory Tender 5/1/2019 | $10,000,000 | |
| 1,000,000 | San Bernardino, CA CCD, RBC Muni Products (Series G-78) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 1,000,000 | |
| 3,450,000 | San Diego County, CA (Museum of Contemporary Art San Diego), (Series 2004) Weekly VRDNs, (Northern Trust Co., Chicago, IL LOC), 2.320%, 5/2/2019 | 3,450,000 | |
| 24,000,000 | San Diego County, CA Water Authority, (Series 8), CP, (MUFG Bank Ltd. LIQ), 1.700%, Mandatory Tender 6/4/2019 | 24,000,000 | |
| 5,000,000 | San Diego County, CA Water Authority, (Series 8), CP, (MUFG Bank Ltd. LIQ), 2.070%, Mandatory Tender 5/2/2019 | 5,000,000 | |
| 3,000,000 | San Diego, CA USD, RBC Muni Products (Series 2018-G51) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 3,000,000 | |
| 8,275,000 | San Diego, CA USD, Tender Option Bond Trust Receipts (Series 2019-ZM0755) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.300%, 5/2/2019 | 8,275,000 | |
| 9,945,000 | San Francisco, CA City & County Airport Commission, Stage Trust (Series 2010-03C) TOBs, (GTD by Wells Fargo Bank, N.A.)/(Wells Fargo Bank, N.A. LIQ), 2.570%, Optional Tender 7/25/2019 | 9,945,000 | |
| 1,690,000 | San Francisco, CA City & County MFH (Related/Mariposa Development Co. LP), (2017 Series B-2) Weekly VRDNs, (Bank of America N.A. LOC), 2.250%, 5/1/2019 | 1,690,000 | |
| 5,600,000 | San Francisco, CA Public Utilities Commission (Power Enterprise), (Series A-1), CP, (Bank of America N.A. LOC), 1.680%, Mandatory Tender 6/4/2019 | 5,600,000 | |
| 19,928,000 | San Francisco, CA Public Utilities Commission (Wastewater Enterprise), (Series A-2), CP, (Bank of America N.A. LOC), 1.630%, Mandatory Tender 7/30/2019 | 19,928,000 | |
| 3,330,000 | San Francisco, CA Public Utilities Commission (Water Enterprise), Tender Option Bond Trust Receipts (Series 2018-XF0607) Weekly VRDNs, (TD Bank, N.A. LIQ), 2.300%, 5/2/2019 | 3,330,000 | |
| 2,230,000 | San Mateo County, CA CCD, Tender Option Bond Trust Certificates (Series 2018-XM0712) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.310%, 5/2/2019 | 2,230,000 | |
| 3,795,000 | San Rafael City, CA High School District, Tender Option Bond Trust Receipts (Series 2018-XF0674) Weekly VRDNs, (Royal Bank of Canada LIQ), 2.310%, 5/2/2019 | 3,795,000 | |
| 2,985,000 | Santa Clara County, CA, (Series 2018-XF0646) Weekly VRDNs, (Toronto Dominion Bank LIQ), 2.300%, 5/2/2019 | 2,985,000 | |
| 1,960,000 | Santa Clara Valley, CA Water District, (Series A), CP, (MUFG Bank Ltd. LOC), 1.540%, Mandatory Tender 5/9/2019 | 1,960,000 | |
| 3,000,000 | Sonoma County, CA Junior College District, (Series 2018 G-6) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 3,000,000 |
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8
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| California—continued | |||
| $3,000,000 | Southern California Public Power Authority (Power Projects), (Series 2009-1: Magnolia Power Project A) Daily VRDNs, (U.S. Bank, N.A. LOC), 2.050%, 5/1/2019 | $3,000,000 | |
| 2,410,000 | Southwestern CCD, CA, Tender Option Bond Trust Receipts (Series 2015-ZF0250) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.400%, 5/2/2019 | 2,410,000 | |
| 4,750,000 | Sweetwater, CA Union High School District, RBC Muni Products, Inc. Trust (Series G-95) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | 4,750,000 | |
| 8,490,000 | Twin Rivers, CA USD, Tender Option Bond Trust Certificates (Series 2017-XF2442) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Morgan Stanley Bank, N.A. LIQ), 2.350%, 5/2/2019 | 8,490,000 | |
| 11,335,000 | University of California (The Regents of), (2013 Series AL-3) Daily VRDNs, 2.070%, 5/1/2019 | 11,335,000 | |
| 2,450,000 | University of California (The Regents of), (Series A), CP, 1.550%, Mandatory Tender 5/22/2019 | 2,450,000 | |
| 10,000,000 | University of California (The Regents of), Tender Option Bond Trust Certificates (Series 2018-ZF2670) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.320%, 5/2/2019 | 10,000,000 | |
| 2,675,000 | University of California (The Regents of), Tender Option Bond Trust Receipts (2016-XF0524) Weekly VRDNs, (TD Bank, N.A. LIQ), 2.300%, 5/2/2019 | 2,675,000 | |
| 1,500,000 | University of California (The Regents of), Tender Option Bond Trust Receipts (Series 2018-ZM0660) Weekly VRDNs, (Bank of America N.A. LIQ), 2.300%, 5/2/2019 | 1,500,000 | |
| 5,630,000 | Ventura County, CA Public Financing Authority (Ventura County, CA), Series 2015-ZF2065 Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.350%, 5/2/2019 | 5,630,000 | |
| 5,685,000 | Ventura County, CA Public Financing Authority (Ventura County, CA), Series 2015-ZF2066 Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.350%, 5/2/2019 | 5,685,000 | |
| 8,675,000 | Visalia, CA USD, Floater Certificates (Series 2018-ZM0657) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Morgan Stanley Bank, N.A. LIQ), 2.320%, 5/2/2019 | 8,675,000 | |
| 13,585,000 | Western Placer, CA USD, Tender Option Bond Trust Receipts (Series 2017-XG0152) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Barclays Bank PLC LIQ), 2.350%, 5/2/2019 | 13,585,000 | |
| 23,035,000 | Whittier, CA Health Facility Revenue Bonds (Presbyterian Intercommunity Hospital Obligated Group), Golden Blue 3a-7 (Series 2018-030) VRENs, (Barclays Bank PLC LIQ)/(Barclays Bank PLC LOC), 2.420%, 5/2/2019 | 23,035,000 |
Semi-Annual Shareholder Report
9
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| California—continued | |||
| $3,350,000 | Yosemite, CA CCD, RBC Muni Products (Series 2018-G50) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.300%, 5/2/2019 | $3,350,000 | |
| TOTAL INVESTMENT IN SECURITIES—99.5% (AT AMORTIZED COST)2 | 1,000,737,137 | ||
| OTHER ASSETS AND LIABILITIES - NET—0.5%3 | 4,775,969 | ||
| TOTAL NET ASSETS—100% | $1,005,513,106 |
At April 30, 2019, the Fund held no securities that are subject to the federal alternative minimum tax (AMT).
| 1 | Current rate and current maturity or next reset date shown for floating rate notes and variable rate notes/demand instruments. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
| 2 | Also represents cost for federal tax purposes. |
| 3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Note: The categories of investments are shown as a percentage of total net assets at April 30, 2019.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
In valuing the Fund's assets, as of April 30, 2019, all investments of the Fund are valued using amortized cost, which is a methodology utilizing Level 2 inputs.
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10
The following acronyms are used throughout this portfolio:
| CCD | —Community College District |
| CP | —Commercial Paper |
| FHLB | —Federal Home Loan Bank |
| FHLMC | —Federal Home Loan Mortgage Corporation |
| GTD | —Guaranteed |
| IDA | —Industrial Development Authority |
| INS | —Insured |
| LIQ | —Liquidity Agreement |
| LOC | —Letter of Credit |
| MFH | —Multi-Family Housing |
| PCFA | —Pollution Control Finance Authority |
| TOBs | —Tender Option Bonds |
| TRANs | —Tax and Revenue Anticipation Notes |
| USD | —Unified School District |
| VRDNs | —Variable Rate Demand Notes |
| VRDPs | —Variable Rate Demand Preferreds |
| VRENs | —Variable Rate Extendible Notes |
See Notes which are an integral part of the Financial Statements
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11
Financial Highlights–Wealth Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.007 | 0.011 | 0.006 | 0.002 | 0.0001 | 0.0001 |
| Net realized gain (loss) | 0.0001 | (0.000)1 | 0.0001 | 0.003 | 0.0001 | 0.0001 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.007 | 0.011 | 0.006 | 0.005 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.007) | (0.011) | (0.006) | (0.002) | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | (0.000)1 | (0.000)1 | (0.000)1 | (0.003) | (0.000)1 | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.007) | (0.011) | (0.006) | (0.005) | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.69% | 1.10% | 0.56% | 0.49% | 0.02% | 0.03% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 0.28%3 | 0.28% | 0.28% | 0.18%4 | 0.08% | 0.09% |
| Net investment income | 1.38%3 | 1.10% | 0.58% | 0.12% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.14%3 | 0.19% | 0.29% | 0.39% | 0.51% | 0.53% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $469,420 | $372,325 | $156,974 | $54,046 | $147,528 | $119,823 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.18% after taking into account these expense reductions. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
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12
Statement of Assets and Liabilities
April 30, 2019 (unaudited)
| Assets: | ||
| Investment in securities, at amortized cost and fair value | $1,000,737,137 | |
| Cash | 290,597 | |
| Income receivable | 4,794,896 | |
| Receivable for shares sold | 143,526 | |
| TOTAL ASSETS | 1,005,966,156 | |
| Liabilities: | ||
| Payable for shares redeemed | $157,634 | |
| Income distribution payable | 61,865 | |
| Payable for investment adviser fee (Note 4) | 4,520 | |
| Payable for administrative fees (Note 4) | 2,188 | |
| Payable for transfer agent fee | 44,266 | |
| Payable for portfolio accounting fees | 43,735 | |
| Payable for distribution services fee (Note 4) | 42,428 | |
| Payable for other service fees (Note 4) | 89,314 | |
| Accrued expenses (Note 4) | 7,100 | |
| TOTAL LIABILITIES | 453,050 | |
| Net assets for 1,005,510,826 shares outstanding | $1,005,513,106 | |
| Net Assets Consist of: | ||
| Paid-in capital | $1,005,510,791 | |
| Total distributable earnings | 2,315 | |
| TOTAL NET ASSETS | $1,005,513,106 | |
| Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
| Wealth Shares: | ||
| $469,419,848 ÷ 469,418,836 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Service Shares: | ||
| $122,867,955 ÷ 122,867,673 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Cash II Shares: | ||
| $223,789,227 ÷ 223,788,681 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Cash Series Shares: | ||
| $37,207,622 ÷ 37,207,538 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Capital Shares: | ||
| $152,228,454 ÷ 152,228,098 shares outstanding, no par value, unlimited shares authorized | $1.00 |
See Notes which are an integral part of the Financial Statements
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13
Statement of Operations
Six Months Ended April 30, 2019 (unaudited)
| Investment Income: | |||
| Interest | $7,913,276 | ||
| Expenses: | |||
| Investment adviser fee (Note 4) | $1,426,914 | ||
| Administrative fee (Note 4) | 379,464 | ||
| Custodian fees | 16,337 | ||
| Transfer agent fee (Note 2) | 253,186 | ||
| Directors'/Trustees' fees (Note 4) | 3,073 | ||
| Auditing fees | 10,960 | ||
| Legal fees | 10,929 | ||
| Portfolio accounting fees | 87,761 | ||
| Distribution services fee (Note 4) | 318,898 | ||
| Other service fees (Notes 2 and 4) | 535,370 | ||
| Share registration costs | 42,312 | ||
| Printing and postage | 16,773 | ||
| Miscellaneous (Note 4) | 4,542 | ||
| TOTAL EXPENSES | 3,106,519 | ||
| Waivers and Reimbursement: | |||
| Waiver of investment adviser fee (Note 4) | $(653,387) | ||
| Waivers/reimbursement of other operating expenses (Notes 2 and 4) | (313,317) | ||
| TOTAL WAIVERS AND REIMBURSEMENT | (966,704) | ||
| Net expenses | 2,139,815 | ||
| Net investment income | 5,773,461 | ||
| Change in net assets resulting from operations | $5,773,461 |
See Notes which are an integral part of the Financial Statements
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14
Statement of Changes in Net Assets
| Six Months Ended (unaudited) 4/30/2019 | Year Ended 10/31/2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations: | ||
| Net investment income | $5,773,461 | $5,300,843 |
| Net realized gain | — | 3,755 |
| CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 5,773,461 | 5,304,598 |
| Distributions to Shareholders: | ||
| Wealth Shares | (3,069,982) | (2,851,723) |
| Service Shares | (780,169) | (1,249,846) |
| Cash II Shares | (966,334) | (66,475) |
| Cash Series Shares | (127,508) | (154,594) |
| Capital Shares | (834,690) | (1,098,975) |
| CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (5,778,683) | (5,421,613) |
| Share Transactions: | ||
| Proceeds from sale of shares | 1,123,397,475 | 1,520,329,634 |
| Net asset value of shares issued to shareholders in payment of distributions declared | 5,360,352 | 4,707,102 |
| Cost of shares redeemed | (820,364,177) | (1,285,061,279) |
| CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 308,393,650 | 239,975,457 |
| Change in net assets | 308,388,428 | 239,858,442 |
| Net Assets: | ||
| Beginning of period | 697,124,678 | 457,266,236 |
| End of period | $1,005,513,106 | $697,124,678 |
See Notes which are an integral part of the Financial Statements
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15
Notes to Financial Statements
April 30, 2019 (unaudited)
1. ORGANIZATION
Money Market Obligations Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of 20 portfolios. The financial statements included herein are only those of Federated California Municipal Cash Trust (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers five classes of shares: Wealth Shares, Service Shares, Cash II Shares, Cash Series Shares and Capital Shares. The financial highlights of the Service Shares, Cash II Shares, Cash Series Shares and Capital Shares are presented separately. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to provide current income exempt from federal regular income tax and the personal income taxes imposed by the state of California consistent with stability of principal. Interest income from the Fund's investments may be subject to the federal AMT for individuals.
The Fund operates as a retail money market fund. As a retail money market fund, the Fund: (1) will generally continue to use amortized cost to value its portfolio securities and transact at a stable $1.00 net asset value (NAV); (2) has adopted policies and procedures reasonably designed to limit investments in the Fund to accounts beneficially owned by natural persons as required for a retail money market fund by Rule 2a-7 under the Act; and (3) has adopted policies and procedures to impose liquidity fees on redemptions and/or temporary redemption gates in the event that the Fund's weekly liquid assets were to fall below a designated threshold, if the Fund's Trustees determine such liquidity fees or redemption gates are in the best interests of the Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
Securities are valued at amortized cost. Under the amortized cost valuation method, an investment is valued initially at its cost as determined in accordance with GAAP. The Fund then adjusts the amount of interest income accrued each day over the term of the investment to account for any difference between the initial cost of the investment and the amount payable at its maturity. If amortized cost is determined not to approximate fair value, the value of the portfolio securities will be determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share.
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16
The Trustees have ultimate responsibility for determining the fair value of investments. The Trustees have appointed a valuation committee (“Valuation Committee”) comprised of officers of the Fund, Federated Investment Management Company (the “Adviser”) and certain of the Adviser's affiliated companies to assist in determining fair value of securities and in overseeing the comparison of amortized cost to market-based value. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of monitoring the relationship of market-based value and amortized cost. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs and assumptions), and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared daily and paid monthly. Investment income, realized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. Amortization/accretion of premium and discount is included in investment income. The detail of the total fund expense waivers and reimbursements of $966,704 is disclosed in various locations in this Note 2 and Note 4. For the six months ended April 30, 2019, transfer agent fees for the Fund were as follows:
| Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
| Wealth Shares | $8,694 | $(4,273) |
| Service Shares | 59,300 | (57,922) |
| Cash II Shares | 100,399 | (98,487) |
| Cash Series Shares | 21,777 | (21,344) |
| Capital Shares | 63,016 | (61,716) |
| TOTAL | $253,186 | $(243,742) |
Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Other Service Fees
The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund's Wealth Shares, Service Shares, Cash II Shares, Cash Series Shares and Capital Shares to unaffiliated financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms
Semi-Annual Shareholder Report
17
described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees. In addition, unaffiliated third-party financial intermediaries may waive other service fees. This waiver can be modified or terminated at any time. For the six months ended April 30, 2019, other service fees for the Fund were as follows:
| Other Service Fees Incurred | |
| Service Shares | $173,129 |
| Cash II Shares | 246,381 |
| Cash Series Shares | 50,717 |
| Capital Shares | 65,143 |
| TOTAL | $535,370 |
For the six months ended April 30, 2019, the Fund's Wealth Shares did not incur other service fees.
Federal Taxes
It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the six months ended April 30, 2019, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of April 30, 2019, tax years 2015 through 2018 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.
When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Restricted Securities
The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at amortized cost in accordance with Rule 2a-7 under the Act.
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Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. The Fund applies investment company accounting and reporting guidance.
3. SHARES OF BENEFICIAL INTEREST
The following tables summarize share activity:
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Wealth Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 494,993,390 | $494,993,390 | 793,990,467 | $793,990,467 |
| Shares issued to shareholders in payment of distributions declared | 2,823,835 | 2,823,835 | 2,428,846 | 2,428,846 |
| Shares redeemed | (400,718,956) | (400,718,956) | (581,029,754) | (581,029,754) |
| NET CHANGE RESULTING FROM WEALTH SHARE TRANSACTIONS | 97,098,269 | $97,098,269 | 215,389,559 | $215,389,559 |
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Service Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 125,084,724 | $125,084,724 | 266,596,451 | $266,596,451 |
| Shares issued to shareholders in payment of distributions declared | 616,181 | 616,181 | 995,909 | 995,909 |
| Shares redeemed | (143,010,872) | (143,010,872) | (278,290,000) | (278,290,000) |
| NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS | (17,309,967) | $(17,309,967) | (10,697,640) | $(10,697,640) |
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Cash II Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 323,851,568 | $323,851,568 | 51,679,593 | $51,679,593 |
| Shares issued to shareholders in payment of distributions declared | 964,310 | 964,310 | 65,516 | 65,516 |
| Shares redeemed | (116,166,698) | (116,166,698) | (44,845,496) | (44,845,496) |
| NET CHANGE RESULTING FROM CASH II SHARE TRANSACTIONS | 208,649,180 | $208,649,180 | 6,899,613 | $6,899,613 |
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| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Cash Series Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 39,844,315 | $39,844,315 | 82,594,934 | $82,594,934 |
| Shares issued to shareholders in payment of distributions declared | 126,284 | 126,284 | 152,128 | 152,128 |
| Shares redeemed | (41,475,262) | (41,475,262) | (95,772,462) | (95,772,462) |
| NET CHANGE RESULTING FROM CASH SERIES SHARE TRANSACTIONS | (1,504,663) | $(1,504,663) | (13,025,400) | $(13,025,400) |
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Capital Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 139,623,478 | $139,623,478 | 325,468,189 | $325,468,189 |
| Shares issued to shareholders in payment of distributions declared | 829,742 | 829,742 | 1,064,703 | 1,064,703 |
| Shares redeemed | (118,992,389) | (118,992,389) | (285,123,567) | (285,123,567) |
| NET CHANGE RESULTING FROM CAPITAL SHARE TRANSACTIONS | 21,460,831 | $21,460,831 | 41,409,325 | $41,409,325 |
| NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 308,393,650 | $308,393,650 | 239,975,457 | $239,975,457 |
4. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.30% of the Fund's average daily net assets. Prior to February 28, 2018, the annual advisory fee was 0.40% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund. For the six months ended April 30, 2019, the Adviser voluntarily waived $653,387 of its fee and reimbursed $243,742 of transfer agent fees.
Administrative Fee
Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below:
| Administrative Fee | Average Daily Net Assets of the Investment Complex |
| 0.100% | on assets up to $50 billion |
| 0.075% | on assets over $50 billion |
Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, the annualized fee paid to FAS was 0.080% of average daily net assets of the Fund.
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In addition, FAS may charge certain out-of-pocket expenses to the Fund.
Distribution Services Fee
The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Cash II Shares and Cash Series Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses at the following percentages of average daily net assets annually, to compensate FSC:
| Percentage of Average Daily Net Assets of Class | |
| Cash II Shares | 0.20% |
| Cash Series Shares | 0.60% |
Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, distribution services fees for the Fund were as follows:
| Distribution Services Fees Incurred | Distribution Services Fees Waived | |
| Cash II Shares | $197,105 | $(49,276) |
| Cash Series Shares | 121,793 | (20,299) |
| TOTAL | $318,898 | $(69,575) |
When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended April 30, 2019, FSC retained $216 fees paid by the Fund.
Other Service Fees
For the six months ended April 30, 2019, FSSC received $1,041 of the other service fees disclosed in Note 2.
Expense Limitation
Due to the possibility of changes in market conditions and other factors, there can be no assurance that the level of waivers/reimbursement/reduction of Fund expenses reflected in the financial highlights will be maintained in the future. However, the Adviser and certain of its affiliates (which may include FSC, FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding extraordinary expenses, interest expense and proxy-related expenses paid by the Fund, if any) paid by the Fund's Wealth Shares, Service Shares, Cash II Shares, Cash Series Shares and Capital Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.28%, 0.53%, 0.68%, 1.03% and 0.38% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) March 1, 2020; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.
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Interfund Transactions
During the six months ended April 30, 2019, the Fund engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and amounted to $261,220,000 and $264,180,000, respectively.
Directors'/Trustees' and Miscellaneous Fees
Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Directors'/Trustees' fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
5. CONCENTRATION OF RISK
Since the Fund invests a substantial portion of its assets in issuers located in one state, it will be more susceptible to factors adversely affecting issuers of that state than would be a comparable tax-exempt mutual fund that invests nationally. In order to reduce the credit risk associated with such factors, at April 30, 2019, 51.0% of the securities in the portfolio of investments were backed by letters of credit or bond insurance of various financial institutions and financial guaranty assurance agencies. The largest percentage of investments insured by or supported (backed) by a letter of credit from any one institution or agency, was 9.3% of total investments.
6. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of April 30, 2019, there were no outstanding loans. During the six months ended April 30, 2019, the program was not utilized.
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Shareholder Expense Example (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2018 to April 30, 2019.
ACTUAL EXPENSES
The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, toestimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and anassumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you shouldnot use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relativetotal costs of owning different funds.
| Beginning Account Value 11/1/2018 | Ending Account Value 4/30/2019 | Expenses Paid During Period1 | |
| Actual | $1,000 | $1,006.90 | $1.39 |
| Hypothetical (assuming a 5% return before expenses) | $1,000 | $1,023.40 | $1.40 |
| 1 | Expenses are equal to the Fund's annualized net expense ratio of 0.28%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). |
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Evaluation and Approval of Advisory Contract–May 2018
federated california municipal cash trust (the “Fund”)
At its meetings in May 2018, the Fund's Board of Trustees (the “Board”), including a majority of those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the Fund's investment advisory contract for an additional one-year term. The Board's decision regarding the contract reflects the exercise of its business judgment after considering all of the information received on whether to continue the existing arrangements.
The Board had previously appointed a Senior Officer, whose duties included specified responsibilities relating to the process by which advisory fees are to be charged to a fund advised by Federated Investment Management Company (the “Adviser”) or its affiliates (collectively, “Federated”) (each, a “Federated fund”). The Senior Officer's responsibilities included preparing and furnishing to the Board an annual independent written evaluation that covered topics discussed below. In December 2017, the Senior Officer position was eliminated. Notwithstanding the elimination of the Senior Officer position, at the request of the Independent Trustees, the Fund's Chief Compliance Officer (the CCO) furnished to the Board in advance of its May 2018 meetings an independent written evaluation covering substantially the same topics that had been covered in the Senior Officer's written evaluation in prior years. The Board considered the CCO's independent written evaluation (the “CCO Fee Evaluation Report”), along with other information, in evaluating the reasonableness of the Fund's management fee and in deciding to approve the continuation of the investment advisory contract. Consistent with the former Senior Officer position, the CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees.
The Board also considered judicial decisions concerning allegedly excessive investment advisory fees in making its decision. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser's fiduciary duty with respect to its receipt of compensation from a fund: (1) the nature and quality of the services provided by an adviser to a fund and its shareholders (including the performance of the fund, its benchmark and comparable funds); (2) an adviser's cost of providing the services (including the profitability to an adviser of providing advisory services to a fund); (3) the extent to which an adviser may realize “economies of scale” as a fund grows larger and, if such economies of scale exist, whether they have been shared with a fund and its shareholders or the family of funds; (4) any “fall-out” financial benefits that accrue to an adviser because of its relationship with a fund (including
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research services received from brokers that execute fund trades and any fees paid to affiliates of an adviser for services rendered to a fund); (5) comparative fee and expense structures (including a comparison of fees paid to an adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the Adviser or its affiliates for what might be viewed as like services); and (6) the extent of care, conscientiousness and independence with which the fund's board members perform their duties and their expertise (including whether they are fully informed about all facts the board deems relevant to its consideration of an adviser's services and fees). The Board noted that the Securities and Exchange Commission (SEC) disclosure requirements regarding the basis for the Board's approval of the Fund's investment advisory contract generally align with the factors listed above. The Board was aware of these factors and was guided by them in its review of the Fund's investment advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.
The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds. The Independent Trustees were assisted in their deliberations by independent legal counsel.
In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board received detailed information about the Fund and the Federated organization throughout the year, and in connection with its May meetings at which the Board's formal approval of the advisory and subadvisory contracts occurred. In this regard, Federated provided much of this information at each regular meeting of the Board, and furnished additional information specifically in connection with the May meetings. In the months preceding the May meetings, the Board requested and reviewed written materials prepared by Federated in response to requests on behalf of the Independent Trustees encompassing a wide variety of topics. At the May meetings, in addition to meeting in separate sessions of the Independent Trustees without management present, senior management of the Adviser also met with the Independent Trustees and their counsel to discuss the materials presented and such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the advisory and subadvisory contracts. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose.
The Board's consideration of the investment advisory contract included review of the CCO Fee Evaluation Report, accompanying data and additional information covering the following matters among others: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in terms relative to its particular investment program and certain competitor or “peer group” funds and/or other benchmarks, as appropriate) and comments on the
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reasons for performance; the Fund's investment objectives; the Fund's expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to similar and/or competing funds), with due regard for contractual or voluntary expense limitations; the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial and other risks assumed by the Adviser in sponsoring the Fund; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are generally available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.
While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged by other advisers for managing funds with comparable investment programs, the Board has found the use of such comparisons to be relevant to its deliberations. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund's total expense ratio (i.e., gross and net advisory fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated using data supplied by independent fund ranking organizations (the “Peer Group”). The Board received a description of the composition and methodology used to select the Peer Group. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because it is believed that they are more relevant. For example, other mutual funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles. Also, they are the type of investment vehicle, in fact, chosen and maintained by the Fund's investors. The range of their fees and expenses, therefore, appears to be a relevant indicator of what consumers have found to be reasonable in the marketplace in which the Fund competes.
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The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund's fee rates relative to its Peer Group. In this regard, the Board noted that the contractual advisory fee rate was above the median of the relevant Peer Group, but the Board noted the applicable waivers and reimbursements, and that the overall expense structure of the Fund remained competitive in the context of other factors considered by the Board.
For comparison, the CCO reviewed the fees charged by Federated for providing advisory services to products other than the Federated funds (e.g., institutional and separate accounts and third-party unaffiliated mutual funds for which Federated serves as sub-adviser) (referenced to as “Comparable Funds/Accounts”). With respect to Comparable Funds/Accounts other than third-party mutual funds, the CCO concluded that they are inherently different products. Those differences include, but are not limited to, different types of targeted investors; different applicable laws and regulations; different legal structures; different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; and the time spent by portfolio managers and their teams, as well as personnel in the Funds Financial Services, Legal, Compliance and Risk Management departments, in reviewing securities pricing, addressing different administrative responsibilities, addressing different degrees of risk associated with management and a variety of different costs. The CCO also reviewed the differences in the nature of the services required for Federated to manage its proprietary mutual fund business versus managing a discrete pool of assets as a sub-adviser to another institution's mutual fund, and that Federated generally performs significant additional services and assumes substantially greater risk in managing the Fund and other Federated funds than in its role as sub-adviser to an unaffiliated third-party mutual fund. The CCO did not consider the fees for providing advisory services to Comparable Funds/Accounts to be determinative in judging the appropriateness of the Federated funds' advisory fees.
Following such evaluation, and full deliberations, the Board concluded that the fees and expenses of the Fund are reasonable and supported renewal of the Fund's investment advisory contract.
The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of the Adviser and its affiliates dedicated to the Fund. In this regard, the Board evaluated, among other things, the Adviser's personnel, experience, track record, overall reputation and willingness to invest in personnel and infrastructure that benefit the Fund. In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and the Adviser's ability and experience in attracting and retaining qualified personnel to service the Fund. The Board noted the compliance program of the Adviser and the compliance-related resources provided to the Fund by the Adviser, including the Adviser's commitment to
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respond to rulemaking initiatives of the SEC. The Fund's ability to deliver competitive performance when compared to its Peer Group was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund's investment program. The Adviser's ability to execute this program was one of the Board's considerations in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services warrant the continuation of the investment advisory contract.
In evaluating the Fund's investment performance, the Board considered performance results in light of the Fund's investment objective, strategies and risks, as disclosed in the Fund's prospectus. The Board considered detailed investment reports on the Fund's performance that were provided to the Board throughout the year and in connection with the May meetings. The CCO also reviewed information regarding the performance of other mutual funds in the Peer Group, noting the CCO's view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases individual funds may exhibit significant and unique differences in their objectives and management techniques when compared to other funds within a Peer Group.
The Fund's performance was above the median of the relevant Peer Group for the one-year period covered by the CCO Fee Evaluation Report. The Board also considered the relatively tight dispersion of performance data with respect to the Fund and its Peer Group.
Following such evaluation, and full deliberations, the Board concluded that the performance of the Fund supported renewal of the Fund's investment advisory contract.
The Board also received financial information about Federated, including information regarding the compensation and ancillary (or “fall-out”) benefits Federated derived from its relationships with the Federated funds. This information covered not only the fees under the investment advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator and distributor). In this regard, the Board considered that certain Federated subsidiaries provide distribution and shareholder services to the Federated funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The information also detailed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a Federated fund to be competitive in the marketplace, the Adviser and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to Federated fund investors and/or indicated to the Board their intention to do so in the future. Moreover, the Board receives regular reporting as to the institution, adjustment or elimination of these voluntary waivers.
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In 2018, the Board approved a reduction of 10 basis points in the contractual advisory fee.
Federated furnished information, requested by the CCO, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the CCO. The CCO noted that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs continues to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable, since a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated fund and may produce unintended consequences. The allocation information, including the CCO's view that fund-by-fund estimations may be unreliable, was considered in the evaluation by the Board.
The Board and the CCO also reviewed information compiled by Federated comparing its profitability information to other publicly held fund management companies, including information regarding profitability trends over time. In this regard, the CCO concluded that Federated's profit margins did not appear to be excessive. The CCO also noted that Federated appeared financially sound, with the resources necessary to fulfill its obligations under its contracts with the Fund.
The CCO Fee Evaluation Report also discussed the notion of possible realization of “economies of scale” as a fund grows larger. In this regard, the Board considered that the Adviser has made significant and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, shareholder services, compliance, internal audit and risk management functions, as well as systems technology (including technology relating to cybersecurity) and that the benefits of these efforts (as well as any economies of scale, should they exist) were likely to be shared with the Federated fund family as a whole. The Board noted that the Adviser's investments in these areas are extensive. In addition, the Board considered that the Adviser and its affiliates have frequently waived fees and/or reimbursed expenses and that this has allowed fund shareholders to share potential economies of scale with shareholders. The Board also considered that such waivers and reimbursements can provide protection from an increase in expenses if a Federated fund's assets decline. Federated, as it does throughout the year, and specifically in connection with the Board's review of the advisory and subadvisory contracts, furnished information relative to revenue sharing or adviser-paid fees. Federated and the CCO noted that this information should be viewed to determine if there was an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, and should not be viewed to determine the appropriateness of advisory fees because it would represent marketing and distribution expenses. The Board also noted the absence of any applicable
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regulatory or industry guidelines on this subject, which (as discussed in the CCO Fee Evaluation Report) is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with “breakpoints” that serve to reduce the fee as a fund attains a certain size.
The CCO stated that his observations and the information accompanying the CCO Fee Evaluation Report supported a finding by the Board that the management fee for the Fund was reasonable. Under these circumstances, no objection was raised to the continuation of, the Fund's investment advisory contract. The CCO also recognized that the Board's evaluation of the Federated funds' advisory and subadvisory arrangements is a continuing and on-going process that is informed by the information that the Board requests and receives from management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its on-going oversight of the Federated funds.
In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an investment advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the investment advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund. The Board concluded that, in light of the factors summarized above, including the nature, quality and scope of the services provided to the Fund by the Adviser and its affiliates, continuation of the investment advisory contract was appropriate.
The Board based its decision to approve the investment advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the continuation of the contract reflects its view that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing arrangement.
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Voting Proxies on Fund Portfolio Securities
A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with the Fund and share class name at www.FederatedInvestors.com/FundInformation. Form N-PX filings are also available at the SEC's website at www.sec.gov.
Portfolio Schedule
The Fund files with the SEC a complete schedule of its portfolio holdings as of the close of each month on “Form N-MFP.” Form N-MFP is available on the SEC's website at www.sec.gov. You may access Form N-MFP via the link to the Fund and share class name at www.FederatedInvestors.com.
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You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
This Report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called “householding”), as permitted by applicable rules. The Fund's “householding” program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the “householding” program. The Fund is also permitted to treat a shareholder as having given consent (“implied consent”) if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to “household” at least sixty (60) days before it begins “householding” and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to “opt out” of “householding.” Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of “householding” at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.
Semi-Annual Shareholder Report
32
Federated California Municipal Cash Trust
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedInvestors.com
or call 1-800-341-7400.
or call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 60934N369
35087 (6/19)
Federated is a registered trademark of Federated Investors, Inc.
2019 ©Federated Investors, Inc.
2019 ©Federated Investors, Inc.
Semi-Annual Shareholder Report
April 30, 2019
| Share Class | Ticker | Institutional | FFTXX | Premier | FTFXX |
Federated Institutional Tax-Free Cash Trust
A Portfolio of Money Market Obligations Trust
IMPORTANT NOTICE REGARDING REPORT DELIVERY
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4. Your election to receive reports in paper will apply to all funds held with the Fund complex or your financial intermediary.
The Fund operates as a “Floating Net Asset Value” Money Market Fund.
The Share Price will fluctuate. It is possible to lose money by investing in the Fund.
Not FDIC Insured ■ May Lose Value ■ No Bank Guarantee
Portfolio of Investments Summary Tables (unaudited)
At April 30, 2019, the Fund's portfolio composition1 was as follows:
| Security Type | Percentage of Total Net Assets |
| Variable Rate Demand Instruments | 98.4% |
| Commercial Paper | 1.5% |
| Other Assets and Liabilities—Net2 | 0.1% |
| TOTAL | 100.0% |
At April 30, 2019, the Fund's effective maturity schedule3 was as follows:
| Securities With an Effective Maturity of: | Percentage of Total Net Assets |
| 1-7 Days | 99.9% |
| 8-30 Days | 0.0% |
| 31-90 Days | 0.0% |
| 91-180 Days | 0.0% |
| 181 Days or more | 0.0% |
| Other Assets and Liabilities—Net2 | 0.1% |
| TOTAL | 100.0% |
| 1 | See the Fund's Prospectus and Statement of Additional Information for a description of these investments. |
| 2 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
| 3 | Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940, which regulates money market mutual funds. |
Semi-Annual Shareholder Report
1
Portfolio of Investments
April 30, 2019 (unaudited)
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—99.9% | ||
| Alabama—8.7% | |||
| $5,600,000 | Alabama HFA MFH (Double Lake Ventures LLC), (2000 Series A: Turtle Lake) Weekly VRDNs, (FNMA LOC), 2.350%, 5/2/2019 | $5,600,000 | |
| 8,000,000 | Mobile County, AL IDA Gulf Opportunity Zone (SSAB Alabama, Inc.), (Series 2011) Weekly VRDNs, (Nordea Bank Abp LOC), 2.410%, 5/2/2019 | 8,000,000 | |
| 4,540,000 | Mobile, AL Downtown Redevelopment Authority (Austal USA, LLC), (Series 2011-A: Gulf Opportunity Zone Bonds) Weekly VRDNs, (Bank of America N.A. LOC), 2.380%, 5/2/2019 | 4,540,000 | |
| 8,750,000 | Mobile, AL Downtown Redevelopment Authority (Austal USA, LLC), (Series 2011-B: Gulf Opportunity Zone Bonds) Weekly VRDNs, (Societe Generale, Paris LOC), 2.400%, 5/2/2019 | 8,750,000 | |
| 5,525,000 | Mobile, AL IDB (HighProv, LLC), (Series 2006) Weekly VRDNs, (FHLB of Dallas LOC), 2.420%, 5/2/2019 | 5,525,000 | |
| 28,025,000 | Tuscaloosa County, AL IDA (Hunt Refining Co.), (Series 2008C: Gulf Opportunity Zone Bonds) Weekly VRDNs, (Bank of Nova Scotia, Toronto LOC), 2.330%, 5/2/2019 | 28,025,000 | |
| 4,950,000 | Tuscaloosa County, AL IDA (Hunt Refining Co.), (Series 2011A: Gulf Opportunity Zone Bonds) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.250%, 5/1/2019 | 4,950,000 | |
| 4,400,000 | Tuscaloosa County, AL IDA (Hunt Refining Co.), (Series 2011I: Gulf Opportunity Zone Bonds) Weekly VRDNs, (Bank of Nova Scotia, Toronto LOC), 2.330%, 5/2/2019 | 4,400,000 | |
| 13,000,000 | Tuscaloosa County, AL IDA (Hunt Refining Co.), (Series 2011J: Gulf Opportunity Zone Bonds) Weekly VRDNs, (Bank of Nova Scotia, Toronto LOC), 2.330%, 5/2/2019 | 13,000,000 | |
| 15,230,000 | Tuscaloosa County, AL Port Authority (Tuscaloosa Riverfront Development, LLC), (Series 2007: Gulf Opportunity Zone Bonds) Weekly VRDNs, (FHLB of Atlanta LOC), 2.350%, 5/2/2019 | 15,230,000 | |
| TOTAL | 98,020,000 | ||
| Arizona—1.0% | |||
| 5,920,000 | Arizona Health Facilities Authority (Dignity Health (Catholic Healthcare West)), (2008 Series A) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.150%, 5/1/2019 | 5,920,000 | |
| 1,625,000 | Arizona Health Facilities Authority (Dignity Health (Catholic Healthcare West)), (2008 Series B) Weekly VRDNs, (Barclays Bank PLC LOC), 2.300%, 5/1/2019 | 1,625,000 | |
| 4,000,000 | Maricopa County, AZ, IDA Solid Waste Disposal (DC Paloma 2 LLC), (Series 2009) Weekly VRDNs, (CoBank, ACB LOC), 2.350%, 5/2/2019 | 4,000,000 | |
| TOTAL | 11,545,000 |
Semi-Annual Shareholder Report
2
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| Connecticut—3.8% | |||
| $4,435,000 | Connecticut State Health & Educational Facilities (CIL Community Resources, Inc.), (Series A) Weekly VRDNs, (HSBC Bank USA, N.A. LOC), 2.330%, 5/2/2019 | $4,435,000 | |
| 3,900,000 | Connecticut State HEFA (Westminster School), (Series C) Weekly VRDNs, (Bank of America N.A. LOC), 2.350%, 5/2/2019 | 3,900,000 | |
| 6,545,000 | Connecticut State HFA (CIL Realty), (Series 2010) Weekly VRDNs, (HSBC Bank USA, N.A. LOC), 2.330%, 5/2/2019 | 6,545,000 | |
| 23,235,000 | Connecticut State HFA, (Subseries C-3) Weekly VRDNs, (TD Bank, N.A. LIQ), 2.400%, 5/2/2019 | 23,235,000 | |
| 4,320,000 | Shelton, CT Housing Authority (Crosby Commons), (Series 1998) Weekly VRDNs, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 2.350%, 5/2/2019 | 4,320,000 | |
| TOTAL | 42,435,000 | ||
| Florida—12.7% | |||
| 4,810,000 | Coconut Creek, FL (Junior Achievement of South Florida, Inc.), (Series 2007) Weekly VRDNs, (TD Bank, N.A. LOC), 2.420%, 5/2/2019 | 4,810,000 | |
| 9,750,000 | Florida HFA (Woodlands Apartments), (Series 1985-SS) Weekly VRDNs, (Northern Trust Co., Chicago, IL LOC), 2.450%, 5/1/2019 | 9,750,000 | |
| 35,755,000 | JEA, FL Electric System, (Series 2008 D) Daily VRDNs, (U.S. Bank, N.A. LIQ), 2.300%, 5/1/2019 | 35,755,000 | |
| 8,770,000 | JEA, FL Water & Sewer System, (2008 Series B-1: Subordinate Revenue Bonds) Weekly VRDNs, (State Street Bank and Trust Co. LIQ), 2.450%, 5/1/2019 | 8,770,000 | |
| 12,055,000 | JEA, FL Water & Sewer System, (2008 Series B: Senior Revenue Bonds) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.150%, 5/1/2019 | 12,055,000 | |
| 2,500,000 | Jacksonville, FL EDC (JEA, FL Electric System), (Series 2000 F-2), CP, (U.S. Bank, N.A. LIQ), 2.350%, Mandatory Tender 5/2/2019 | 2,500,000 | |
| 15,000,000 | Jacksonville, FL EDC (JEA, FL Electric System), (Series 2000-A), CP, (U.S. Bank, N.A. LIQ), 2.350%, Mandatory Tender 5/2/2019 | 15,000,000 | |
| 7,450,000 | Palm Beach County, FL (Zoological Society of Palm Beach, Inc.), (Series 2001) Weekly VRDNs, (Northern Trust Co., Chicago, IL LOC), 2.200%, 5/2/2019 | 7,450,000 | |
| 10,000,000 | Sunshine State Governmental Finance Commission, FL (Miami-Dade County, FL), (Series 2010A) Weekly VRDNs, (MUFG Union Bank, N.A. LOC), 2.330%, 5/2/2019 | 10,000,000 | |
| 37,580,000 | Sunshine State Governmental Finance Commission, FL (Miami-Dade County, FL), (Series 2010B) Weekly VRDNs, (MUFG Union Bank, N.A. LOC), 2.330%, 5/2/2019 | 37,580,000 | |
| TOTAL | 143,670,000 | ||
| Georgia—5.3% | |||
| 8,800,000 | Burke County, GA Development Authority (Oglethorpe Power Corp.), (Series 2010A) Weekly VRDNs, (Bank of America N.A. LOC), 2.450%, 5/1/2019 | 8,800,000 |
Semi-Annual Shareholder Report
3
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| Georgia—continued | |||
| $3,250,000 | Columbus, GA Development Authority (Lumpkin Park Partners, Ltd.), (Series 2008) Weekly VRDNs, (FHLMC LOC), 2.430%, 5/2/2019 | $3,250,000 | |
| 37,750,000 | Fulton County, GA Development Authority (Children's Healthcare of Atlanta, Inc.), (Series 2008) Weekly VRDNs, (PNC Bank, N.A. LIQ), 2.470%, 5/1/2019 | 37,750,000 | |
| 6,850,000 | Monroe County, GA Development Authority Pollution Control (Oglethorpe Power Corp.), (Series 2010A) Weekly VRDNs, (Bank of Montreal LOC), 2.340%, 5/1/2019 | 6,850,000 | |
| 2,000,000 | Paulding County, GA Hopital Authority (Wellstar Health System, Inc.), (Series 2012B) Weekly VRDNs, (Bank of America N.A. LOC), 2.310%, 5/2/2019 | 2,000,000 | |
| 1,500,000 | Private Colleges & Universities Facilities of GA (Emory University), (Series 2005B-2) Weekly VRDNs, 2.300%, 5/2/2019 | 1,500,000 | |
| TOTAL | 60,150,000 | ||
| Illinois—6.1% | |||
| 1,550,000 | Illinois Development Finance Authority (North Park University), (Series 1999) Weekly VRDNs, (U.S. Bank, N.A. LOC), 2.150%, 5/1/2019 | 1,550,000 | |
| 10,100,000 | Illinois Development Finance Authority IDB (Lyric Opera of Chicago) Weekly VRDNs, (BMO Harris Bank, N.A. LOC)/(JPMorgan Chase Bank, N.A. LOC)/(Northern Trust Co., Chicago, IL LOC), 2.130%, 5/1/2019 | 10,100,000 | |
| 19,125,000 | Illinois Finance Authority (Advocate Aurora Health), (Series 2008C-1) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.150%, 5/1/2019 | 19,125,000 | |
| 5,150,000 | Illinois Finance Authority (Advocate Aurora Health), (Series 2008C-2B) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.150%, 5/1/2019 | 5,150,000 | |
| 2,350,000 | Illinois Finance Authority (Carle Foundation), (Series 2009E) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.310%, 5/2/2019 | 2,350,000 | |
| 3,250,000 | Illinois Finance Authority (Clearbrook Corp.), (Series 2008) Weekly VRDNs, (BMO Harris Bank, N.A. LOC), 2.310%, 5/2/2019 | 3,250,000 | |
| 16,115,000 | Illinois Finance Authority (OSF Health Care Systems), (Series 2018B) Daily VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.300%, 5/1/2019 | 16,115,000 | |
| 5,480,000 | Morton Grove Village, IL (Illinois Holocaust Museum and Education Center), (Series 2006) Weekly VRDNs, (Bank of America N.A. LOC), 2.370%, 5/2/2019 | 5,480,000 | |
| 5,995,000 | Southwestern Illinois Development Authority (Molinero, Inc.), (Series 2010) Weekly VRDNs, (BMO Harris Bank, N.A. LOC), 2.310%, 5/2/2019 | 5,995,000 | |
| TOTAL | 69,115,000 | ||
| Indiana—1.5% | |||
| 3,275,000 | Indiana State Finance Authority Health System (Sisters of St. Francis Health Services, Inc.), (Series 2008F) Weekly VRDNs, (Bank of New York Mellon LOC), 2.320%, 5/2/2019 | 3,275,000 | |
| 5,415,000 | Indianapolis, IN MFH (Washington Pointe, LP), (Series 2009A) Weekly VRDNs, (FNMA LOC), 2.420%, 5/3/2019 | 5,415,000 |
Semi-Annual Shareholder Report
4
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| Indiana—continued | |||
| $8,740,000 | Valparaiso, IN EDRB (Pines Village Retirement Community, Inc.), (Series 2008) Weekly VRDNs, (Wells Fargo Bank, N.A. LOC), 2.360%, 5/2/2019 | $8,740,000 | |
| TOTAL | 17,430,000 | ||
| Iowa—3.2% | |||
| 8,000,000 | Iowa Finance Authority (Archer-Daniels-Midland Co.), Midwestern Disaster Area Revenue Bonds (Series 2011) Weekly VRDNs, 2.350%, 5/1/2019 | 8,000,000 | |
| 27,100,000 | Iowa Finance Authority (Cargill, Inc.), Midwestern Disaster Area Economic Development (Series 2011A) Weekly VRDNs, 2.340%, 5/2/2019 | 27,100,000 | |
| 750,000 | Iowa Finance Authority (Trinity Healthcare Credit Group), (Series 2000D) Weekly VRDNs, 2.400%, 5/2/2019 | 750,000 | |
| TOTAL | 35,850,000 | ||
| Louisiana—1.3% | |||
| 8,000,000 | Louisiana Local Government Environmental Facilities CDA (Isidore Newman School), (Series 2002) Weekly VRDNs, (FHLB of Dallas LOC), 2.100%, 5/1/2019 | 8,000,000 | |
| 3,620,000 | Louisiana Local Government Environmental Facilities CDA (The Academy of the Sacred Heart of New Orleans), (Series 2004) Weekly VRDNs, (FHLB of Dallas LOC), 2.100%, 5/1/2019 | 3,620,000 | |
| 3,350,000 | Louisiana Local Government Environmental Facilities CDA (The Christ Episcopal Church in Covington), (Series 2004) Weekly VRDNs, (FHLB of Dallas LOC), 2.100%, 5/1/2019 | 3,350,000 | |
| TOTAL | 14,970,000 | ||
| Maryland—0.1% | |||
| 685,000 | Maryland State Economic Development Corp. (Maryland Academy of Sciences), (Series 2003: Maryland Science Center) Weekly VRDNs, (Bank of America N.A. LOC), 2.480%, 5/2/2019 | 685,000 | |
| Massachusetts—1.1% | |||
| 85,000 | Commonwealth of Massachusetts, (Series 2001 C) Weekly VRDNs, (State Street Bank and Trust Co. LIQ), 2.300%, 5/2/2019 | 85,000 | |
| 5,660,000 | Massachusetts HEFA (Baystate Medical Center), (Series G) Daily VRDNs, (TD Bank, N.A. LOC), 2.270%, 5/1/2019 | 5,660,000 | |
| 6,305,000 | Massachusetts State Housing Finance Agency Housing Revenue (Princeton Westford), (2015 Series A) Weekly VRDNs, (Bank of America N.A. LOC), 2.310%, 5/2/2019 | 6,305,000 | |
| TOTAL | 12,050,000 | ||
| Michigan—2.3% | |||
| 4,840,000 | Lenawee County, MI EDC (Siena Heights University), (Series 2009) Weekly VRDNs, (FHLB of Chicago LOC), 2.360%, 5/2/2019 | 4,840,000 | |
| 4,100,000 | Michigan Strategic Fund (Kroger Co.), (Series 2010) Weekly VRDNs, (MUFG Bank Ltd. LOC), 2.340%, 5/2/2019 | 4,100,000 |
Semi-Annual Shareholder Report
5
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| Michigan—continued | |||
| $12,830,000 | St. Joseph, MI Hospital Finance Authority (Lakeland Hospitals at Niles & St. Joseph Obligated Group), (Series 2002) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(JPMorgan Chase Bank, N.A. LIQ), 2.440%, 5/2/2019 | $12,830,000 | |
| 4,240,000 | St. Joseph, MI Hospital Finance Authority (Lakeland Hospitals at Niles & St. Joseph Obligated Group), (Series 2006) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(JPMorgan Chase Bank, N.A. LIQ), 2.440%, 5/2/2019 | 4,240,000 | |
| TOTAL | 26,010,000 | ||
| Minnesota—2.1% | |||
| 17,520,000 | Minneapolis, MN (Symphony Place) Weekly VRDNs, (FHLMC LOC), 2.390%, 5/2/2019 | 17,520,000 | |
| 1,200,000 | Minnesota State Higher Education Facility Authority (Augsburg University), (Series Six-J2) Weekly VRDNs, (BMO Harris Bank, N.A. LOC), 2.390%, 5/2/2019 | 1,200,000 | |
| 4,650,000 | St. Louis Park, MN (Parkshore Senior Campus, LLC), (Series 2004) Weekly VRDNs, (FHLMC LOC), 2.380%, 5/2/2019 | 4,650,000 | |
| TOTAL | 23,370,000 | ||
| Mississippi—3.0% | |||
| 34,075,000 | Perry County, MS (Georgia-Pacific LLC), (Series 2002) Weekly VRDNs, 2.550%, 5/2/2019 | 34,075,000 | |
| Multi-State—6.7% | |||
| 24,000,000 | Nuveen AMT-Free Municipal Credit Income Fund, (Series 4) Weekly VRDPs, (Citibank N.A., New York LIQ), 2.380%, 5/2/2019 | 24,000,000 | |
| 9,000,000 | Nuveen Enhanced AMT-Free Quality Municipal Income Fund, (Series 3) Weekly VRDPs, (TD Bank, N.A. LIQ), 2.350%, 5/2/2019 | 9,000,000 | |
| 22,100,000 | Nuveen Enhanced AMT-Free Quality Municipal Income Fund, (Series 4) Weekly VRDPs, (Barclays Bank PLC LIQ), 2.380%, 5/2/2019 | 22,100,000 | |
| 20,000,000 | Nuveen Enhanced AMT-Free Quality Municipal Income Fund, VRDP(Series 5-1000) Weekly VRDPs, (Sumitomo Mitsui Banking Corp. LIQ)/(Sumitomo Mitsui Banking Corp. LOC), 2.390%, 5/2/2019 | 20,000,000 | |
| TOTAL | 75,100,000 | ||
| Nebraska—0.1% | |||
| 1,400,000 | Washington County, NE (Cargill, Inc.), (Series 2010) Weekly VRDNs, 2.350%, 5/2/2019 | 1,400,000 | |
| New York—11.6% | |||
| 18,900,000 | New York City, NY Municipal Water Finance Authority, (Series 2001F-1) Daily VRDNs, (Mizuho Bank Ltd. LIQ), 2.350%, 5/1/2019 | 18,900,000 | |
| 18,000,000 | New York City, NY Municipal Water Finance Authority, (Series 2014AA-8) Daily VRDNs, (Mizuho Bank Ltd. LIQ), 2.350%, 5/1/2019 | 18,000,000 |
Semi-Annual Shareholder Report
6
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| New York—continued | |||
| $6,170,000 | New York City, NY Municipal Water Finance Authority, (Series 2015 BB-4) Daily VRDNs, (Barclays Bank PLC LIQ), 2.300%, 5/1/2019 | $6,170,000 | |
| 5,400,000 | New York City, NY Transitional Finance Authority, (2019 Subseries A-4) Daily VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.300%, 5/1/2019 | 5,400,000 | |
| 1,000,000 | New York City, NY Transitional Finance Authority, Fiscal 2018 (Subseries C-6) Weekly VRDNs, (Sumitomo Mitsui Banking Corp. LIQ), 2.380%, 5/2/2019 | 1,000,000 | |
| 19,040,000 | New York City, NY, (Fiscal 2012 Series G-6) Daily VRDNs, (Mizuho Bank Ltd. LOC), 2.320%, 5/1/2019 | 19,040,000 | |
| 2,000,000 | New York City, NY, (Fiscal 2017 Series A Subseries A-5) Daily VRDNs, (Landesbank Hessen-Thuringen LIQ), 2.320%, 5/1/2019 | 2,000,000 | |
| 5,000,000 | New York City, NY, (Fiscal 2018 Series E Subseries E-5) Daily VRDNs, (TD Bank, N.A. LOC), 2.270%, 5/1/2019 | 5,000,000 | |
| 5,325,000 | New York City, NY, (Subseries D-4) Daily VRDNs, (TD Bank, N.A. LOC), 2.270%, 5/1/2019 | 5,325,000 | |
| 5,000,000 | New York State HFA (100 Maiden Lane), (2004 Series A) Weekly VRDNs, (FNMA LOC), 2.350%, 5/1/2019 | 5,000,000 | |
| 1,400,000 | New York State HFA (600 West 42nd Street), (2009 Series A) Weekly VRDNs, (FNMA LOC), 2.390%, 5/1/2019 | 1,400,000 | |
| 19,350,000 | New York State HFA (Midtown West B LLC), (Series 2009A: 505 West 37th Street Housing) Daily VRDNs, (Landesbank Hessen-Thuringen LOC), 2.310%, 5/1/2019 | 19,350,000 | |
| 24,400,000 | New York State HFA (Midtown West B LLC), (Series 2009B: 505 West 37th Street Housing) Daily VRDNs, (Landesbank Hessen-Thuringen LOC), 2.310%, 5/1/2019 | 24,400,000 | |
| TOTAL | 130,985,000 | ||
| North Carolina—3.8% | |||
| 1,850,000 | Charlotte-Mecklenburg Hospital Authority, NC (Atrium Health (previously Carolinas HealthCare) System), (Series 2018G) Daily VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.300%, 5/1/2019 | 1,850,000 | |
| 1,785,000 | North Carolina Capital Facilities Finance Agency (Salem Academy and College), (Series 2005) Weekly VRDNs, (Branch Banking & Trust Co. LOC), 2.310%, 5/2/2019 | 1,785,000 | |
| 39,540,000 | North Carolina Medical Care Commission (Moses H. Cone Memorial), (Series 2004A) Weekly VRDNs, 2.350%, 5/2/2019 | 39,540,000 | |
| TOTAL | 43,175,000 | ||
| Ohio—2.0% | |||
| 18,000,000 | Franklin County, OH Hospital Facility Authority (OhioHealth Corp,), (Series 2011C) Weekly VRDNs, 2.350%, 5/1/2019 | 18,000,000 | |
| 3,400,000 | Hamilton County, OH Hospital Facilities Authority (The Elizabeth Gamble Deaconess Home Association), (Series 2002A) Weekly VRDNs, (Northern Trust Co., Chicago, IL LOC), 2.370%, 5/2/2019 | 3,400,000 |
Semi-Annual Shareholder Report
7
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| Ohio—continued | |||
| $1,210,000 | Lorain County, OH Port Authority (St. Ignatius High School), (Series 2008) Weekly VRDNs, (U.S. Bank, N.A. LOC), 2.370%, 5/2/2019 | $1,210,000 | |
| TOTAL | 22,610,000 | ||
| Pennsylvania—5.5% | |||
| 1,460,000 | Beaver County, PA IDA (Concordia Lutheran Obligated Group), (Series 2018A) Weekly VRDNs, (BMO Harris Bank, N.A. LOC), 2.320%, 5/2/2019 | 1,460,000 | |
| 7,855,000 | Butler County, PA General Authority (Iroquois School District), (Series 2011) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(PNC Bank, N.A. LIQ), 2.390%, 5/2/2019 | 7,855,000 | |
| 13,300,000 | Butler County, PA General Authority (South Park School District), (Series 2011) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(PNC Bank, N.A. LIQ), 2.390%, 5/2/2019 | 13,300,000 | |
| 2,500,000 | Butler County, PA Hospital Authority (Concordia Lutheran Obligated Group), (Series A of 2012) Weekly VRDNs, (BMO Harris Bank, N.A. LOC), 2.320%, 5/2/2019 | 2,500,000 | |
| 200,000 | Butler County, PA Hospital Authority (Concordia Lutheran Obligated Group), (Series A of 2012) Weekly VRDNs, (BMO Harris Bank, N.A. LOC), 2.320%, 5/2/2019 | 200,000 | |
| 6,245,000 | Emmaus, PA General Authority, (Series 1996) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Wells Fargo Bank, N.A. LIQ), 2.330%, 5/1/2019 | 6,245,000 | |
| 700,000 | Lancaster, PA IDA (Willow Valley Retirement Communities), (Series A of 2009) Weekly VRDNs, (PNC Bank, N.A. LOC), 2.370%, 5/2/2019 | 700,000 | |
| 12,765,000 | Mercer County, PA, (Series 2011) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(PNC Bank, N.A. LIQ), 2.390%, 5/2/2019 | 12,765,000 | |
| 5,200,000 | Pennsylvania HFA (Foxwood Manor Apartments), (Series 2008-O) Weekly VRDNs, (GTD by FHLMC), 2.340%, 5/2/2019 | 5,200,000 | |
| 2,000,000 | Philadelphia, PA Gas Works, (8th Series D) Weekly VRDNs, (Royal Bank of Canada LOC), 2.340%, 5/2/2019 | 2,000,000 | |
| 10,000,000 | Pittsburgh & Allegheny County, PA Sports & Exhibition Authority, (Series A of 2007) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(PNC Bank, N.A. LIQ), 2.390%, 5/2/2019 | 10,000,000 | |
| TOTAL | 62,225,000 | ||
| Tennessee—3.0% | |||
| 6,000,000 | Blount County, TN Public Building Authority (Bradley County, TN), (Series E-6-A) Weekly VRDNs, (Branch Banking & Trust Co. LOC), 2.330%, 5/1/2019 | 6,000,000 | |
| 2,200,000 | Metropolitan Nashville Tennessee Airport Authority, (Series 2008A) Weekly VRDNs, (Societe Generale, Paris LOC), 2.330%, 5/1/2019 | 2,200,000 | |
| 17,000,000 | Sevier County, TN Public Building Authority (Sevier County, TN), Local Government Public Improvement Bonds (Series VII-B-1) Weekly VRDNs, (Bank of America N.A. LOC), 2.310%, 5/1/2019 | 17,000,000 |
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8
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| Tennessee—continued | |||
| $8,675,000 | Sevier County, TN Public Building Authority, (Series V-B-1) Weekly VRDNs, (Branch Banking & Trust Co. LOC), 2.330%, 5/2/2019 | $8,675,000 | |
| TOTAL | 33,875,000 | ||
| Texas—6.4% | |||
| 2,800,000 | Bexar County, TX Housing Finance Corp. (Summit Hills Apartments), (Series 2005A) Weekly VRDNs, (FHLMC LOC), 2.390%, 5/2/2019 | 2,800,000 | |
| 15,450,000 | Harris County, TX Education Facilities Finance Corp. (Methodist Hospital, Harris County, TX), (Series 2008C-1) Daily VRDNs, 2.300%, 5/1/2019 | 15,450,000 | |
| 2,750,000 | Harris County, TX Education Facilities Finance Corp. (Texas Medical Center), (Series 2008B-1) Daily VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.300%, 5/1/2019 | 2,750,000 | |
| 8,980,000 | Harris County, TX HFDC (Methodist Hospital, Harris County, TX), (Subseries 2008A-1) Daily VRDNs, 2.300%, 5/1/2019 | 8,980,000 | |
| 14,335,000 | Harris County, TX Hospital Distict, Senior Lien Refunding Revenue Bonds (Series 2010) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.340%, 5/2/2019 | 14,335,000 | |
| 13,050,000 | Tarrant County, TX HFDC (Cook Children's Medical Center), (Series 2010B) Weekly VRDNs, 2.280%, 5/2/2019 | 13,050,000 | |
| 14,500,000 | Texas State, Veterans Bonds (Series 2011B) Weekly VRDNs, (State Street Bank and Trust Co. LIQ), 2.300%, 5/2/2019 | 14,500,000 | |
| TOTAL | 71,865,000 | ||
| Utah—2.4% | |||
| 25,000,000 | Emery County, UT (Pacificorp), PCRB (Series 1994) Weekly VRDNs, 2.320%, 5/1/2019 | 25,000,000 | |
| 2,000,000 | St. George, UT IDRB (Apogee Enterprises, Inc.), (Series 2010) Weekly VRDNs, (Wells Fargo Bank, N.A. LOC), 2.350%, 5/2/2019 | 2,000,000 | |
| TOTAL | 27,000,000 | ||
| Virginia—2.8% | |||
| 2,670,000 | Fairfax County, VA IDA (Inova Health System), (Series 2016C) Weekly VRDNs, 2.320%, 5/2/2019 | 2,670,000 | |
| 1,600,000 | Fairfax County, VA IDA (Inova Health System), (Series 2018C) Weekly VRDNs, 2.350%, 5/2/2019 | 1,600,000 | |
| 3,775,000 | Hampton Roads, VA Sanitation District, (Series 2016B) Weekly VRDNs, 2.250%, 5/2/2019 | 3,775,000 | |
| 940,000 | Loudoun County, VA IDA (Howard Hughes Medical Institute), (Series 2003F) Weekly VRDNs, 2.470%, 5/1/2019 | 940,000 | |
| 3,510,000 | Loudoun County, VA IDA (Howard Hughes Medical Institute), (Series 2009B) Weekly VRDNs, 2.410%, 5/1/2019 | 3,510,000 | |
| 19,170,000 | Norfolk, VA EDA (Sentara Health Systems Obligation Group), (Series 2016B) Weekly VRDNs, 2.350%, 5/1/2019 | 19,170,000 | |
| TOTAL | 31,665,000 |
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| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| West Virginia—2.1% | |||
| $23,700,000 | West Virginia State Hospital Finance Authority (Cabell Huntington Hospital), (Series 2008A) Weekly VRDNs, (Branch Banking & Trust Co. LOC), 2.320%, 5/2/2019 | $23,700,000 | |
| Wisconsin—0.7% | |||
| 7,640,000 | Wisconsin Public Finance Authority (RPD Holdings, LLC and HGI Wisconsin, LLC), Midwestern Disaster Area Revenue Bonds (Series 2011) Weekly VRDNs, (AgriBank FCB LOC), 2.410%, 5/2/2019 | 7,640,000 | |
| Wyoming—0.6% | |||
| 7,260,000 | Sweetwater County, WY PCRB (Pacificorp), PCRB (Series 1994) Weekly VRDNs, 2.480%, 5/1/2019 | 7,260,000 | |
| TOTAL INVESTMENT IN SECURITIES—99.9% (AT IDENTIFIED COST)2 | 1,127,875,000 | ||
| OTHER ASSETS AND LIABILITIES - NET—0.1%3 | 1,575,865 | ||
| TOTAL NET ASSETS—100% | $1,129,450,865 |
At April 30, 2019, the Fund held no securities that are subject to the federal alternative minimum tax (AMT).
| 1 | Current rate and current maturity or next reset date shown for floating rate notes and variable rate notes/demand instruments. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
| 2 | Also represents cost for federal tax purposes. |
| 3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Note: The categories of investments are shown as a percentage of total net assets at April 30, 2019.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
As of April 30, 2019, all investments of the Fund utilized level 2 inputs, in valuing the Fund's assets carried at fair value.
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The following acronyms are used throughout this portfolio:
| CDA | —Community Development Authority |
| CP | —Commercial Paper |
| EDA | —Economic Development Authority |
| EDC | —Economic Development Commission |
| EDRB | —Economic Development Revenue Bond |
| FHLB | —Federal Home Loan Bank |
| FHLMC | —Federal Home Loan Mortgage Corporation |
| FNMA | —Federal National Mortgage Association |
| GTD | —Guaranteed |
| HEFA | —Health and Education Facilities Authority |
| HFA | —Housing Finance Authority |
| HFDC | —Health Facility Development Corporation |
| IDA | —Industrial Development Authority |
| IDB | —Industrial Development Bond |
| IDRB | —Industrial Development Revenue Bond |
| INS | —Insured |
| LIQ | —Liquidity Agreement |
| LOC | —Letter of Credit |
| MFH | —Multi-Family Housing |
| PCRB | —Pollution Control Revenue Bond |
| VRDNs | —Variable Rate Demand Notes |
| VRDPs | —Variable Rate Demand Preferreds |
See Notes which are an integral part of the Financial Statements
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Financial Highlights–Institutional Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | Period Ended 10/31/20161 | ||
| 2018 | 2017 | |||
| Net Asset Value, Beginning of Period | $1.0000 | $1.0000 | $1.0000 | $1.0000 |
| Income From Investment Operations: | ||||
| Net investment income | 0.0072 | 0.0114 | 0.0059 | 0.0020 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.0072 | 0.0114 | 0.0059 | 0.0020 |
| Less Distributions: | ||||
| Distributions from net investment income | (0.0072) | (0.0114) | (0.0059) | (0.0020) |
| Net Asset Value, End of Period | $1.0000 | $1.0000 | $1.0000 | $1.0000 |
| Total Return2 | 0.72% | 1.15% | 0.59% | 0.20% |
| Ratios to Average Net Assets: | ||||
| Net expenses | 0.20%3 | 0.20% | 0.20% | 0.20%3 |
| Net investment income | 1.44%3 | 1.17% | 0.59% | 0.54%3 |
| Expense waiver/reimbursement4 | 0.16%3 | 0.18% | 0.20% | 0.22%3 |
| Supplemental Data: | ||||
| Net assets, end of period (000 omitted) | $600,779 | $594,047 | $301,268 | $231,159 |
| 1 | Reflects operations for the period from February 26, 2016 (date of initial public investment) to October 31, 2016. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
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12
Financial Highlights–Premier Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.0000 | $1.0000 | $1.0000 | $1.0000 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.0074 | 0.0119 | 0.0064 | 0.0020 | — | — |
| Net realized gain (loss) | — | — | — | (0.0000)1 | 0.0002 | — |
| TOTAL FROM INVESTMENT OPERATIONS | 0.0074 | 0.0119 | 0.0064 | 0.0020 | 0.0002 | — |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.0074) | (0.0119) | (0.0064) | (0.0020) | — | — |
| Distributions from net realized gain | — | — | — | (0.0000)1 | — | (0.000)2 |
| TOTAL DISTRIBUTIONS | (0.0074) | (0.0119) | (0.0064) | (0.0020) | — | (0.000)2 |
| Net Asset Value, End of Period | $1.0000 | $1.0000 | $1.0000 | $1.0000 | $1.00 | $1.00 |
| Total Return3 | 0.75% | 1.20% | 0.64% | 0.25% | 0.00% | 0.00%4 |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 0.15%5 | 0.15% | 0.15% | 0.14% | 0.12% | 0.16% |
| Net investment income | 1.50%5 | 1.21% | 0.65% | 0.26% | 0.00% | 0.00% |
| Expense waiver/reimbursement6 | 0.16%5 | 0.18% | 0.20% | 0.36% | 0.61% | 0.55% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $528,672 | $420,808 | $254,460 | $155,223 | $59,784 | $52,973 |
| 1 | Represents less than $0.0001. |
| 2 | Represents less than $0.001. |
| 3 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 4 | Represents less than 0.01%. |
| 5 | Computed on an annualized basis. |
| 6 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
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13
Statement of Assets and Liabilities
April 30, 2019 (unaudited)
| Assets: | ||
| Investment in securities, at identified cost and fair value | $1,127,875,000 | |
| Cash | 650,630 | |
| Income receivable | 1,832,815 | |
| Receivable for shares sold | 1,485,245 | |
| TOTAL ASSETS | 1,131,843,690 | |
| Liabilities: | ||
| Payable for shares redeemed | $1,609,884 | |
| Income distribution payable | 689,010 | |
| Payable for investment adviser fee (Note 5) | 1,147 | |
| Payable for administrative fees (Note 5) | 2,459 | |
| Payable for other service fees (Notes 2 and 5) | 25,000 | |
| Accrued expenses (Note 5) | 65,325 | |
| TOTAL LIABILITIES | 2,392,825 | |
| Net assets for 1,129,449,951 shares outstanding | $1,129,450,865 | |
| Net Assets Consist of: | ||
| Paid-in capital | $1,129,449,951 | |
| Total distributable earnings (loss) | 914 | |
| TOTAL NET ASSETS | $1,129,450,865 | |
| Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
| Institutional Shares: | ||
| $600,778,894 ÷ 600,779,743 shares outstanding, no par value, unlimited shares authorized | $1.0000 | |
| Premier Shares: | ||
| $528,671,971 ÷ 528,670,208 shares outstanding, no par value, unlimited shares authorized | $1.0000 |
See Notes which are an integral part of the Financial Statements
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14
Statement of Operations
Six Months Ended April 30, 2019 (unaudited)
| Investment Income: | |||
| Interest | $9,096,883 | ||
| Expenses: | |||
| Investment adviser fee (Note 5) | $1,101,200 | ||
| Administrative fee (Note 5) | 439,170 | ||
| Custodian fees | 19,898 | ||
| Transfer agent fee | 25,172 | ||
| Directors'/Trustees' fees (Note 5) | 3,730 | ||
| Auditing fees | 10,116 | ||
| Legal fees | 5,496 | ||
| Portfolio accounting fees | 86,989 | ||
| Other service fees (Notes 2 and 5) | 160,078 | ||
| Share registration costs | 37,768 | ||
| Printing and postage | 9,199 | ||
| Miscellaneous (Note 5) | 17,499 | ||
| TOTAL EXPENSES | 1,916,315 | ||
| Waiver of investment adviser fee (Note 5) | (903,358) | ||
| Net expenses | 1,012,957 | ||
| Net investment income | 8,083,926 | ||
| Change in net assets resulting from operations | $8,083,926 |
See Notes which are an integral part of the Financial Statements
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Statement of Changes in Net Assets
| Six Months Ended (unaudited) 4/30/2019 | Year Ended 10/31/2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations: | ||
| Net investment income | $8,083,926 | $8,844,391 |
| CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 8,083,926 | 8,844,391 |
| Distributions to Shareholders: | ||
| Institutional Shares | (4,630,186) | (4,698,956) |
| Premier Shares | (3,459,958) | (4,138,425) |
| CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (8,090,144) | (8,837,381) |
| Share Transactions: | ||
| Proceeds from sale of shares | 1,290,134,563 | 2,446,160,623 |
| Net asset value of shares issued to shareholders in payment of distributions declared | 4,296,229 | 4,918,921 |
| Cost of shares redeemed | (1,179,829,656) | (1,991,958,294) |
| CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 114,601,136 | 459,121,250 |
| Change in net assets | 114,594,918 | 459,128,260 |
| Net Assets: | ||
| Beginning of period | 1,014,855,947 | 555,727,687 |
| End of period | $1,129,450,865 | $1,014,855,947 |
See Notes which are an integral part of the Financial Statements
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16
Notes to Financial Statements
April 30, 2019 (unaudited)
1. ORGANIZATION
Money Market Obligations Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of 20 portfolios. The financial statements included herein are only those of Federated Institutional Tax-Free Cash Trust (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers two classes of shares: Institutional Shares and Premier Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to provide dividend income exempt from federal regular income taxes while seeking relative stability of principal. Interest income from the Fund's investments may be subject to the federal AMT for individuals, and state and local taxes.
The Fund operates as an institutional money market fund. As an institutional money market fund, the Fund: (1) will not be limited to institutional investors, but will continue to be available to retail investors; (2) will utilize current market-based prices (except as otherwise generally permitted to value individual portfolio securities with remaining maturities of 60 days or less at amortized cost in accordance with Securities and Exchange Commission (SEC) rules and guidance) to value its portfolio securities and transact at a floating net asset value (NAV) that uses four decimal-place precision ($1.0000); and (3) has adopted policies and procedures to impose liquidity fees on redemptions and/or temporary redemption gates in the event that the Fund's weekly liquid assets were to fall below a designated threshold, if the Fund's Board of Trustees (the “Trustees”) determine such liquidity fees or redemption gates are in the best interest of the Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
| ■ | Fixed-income securities with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
| ■ | Fixed-income securities with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium), unless the issuer's creditworthiness is impaired or other factors indicate that amortized cost is not an accurate estimate of the investment's fair value, in which case it would be valued in the same manner as a longer-term security. The Fund may only use this method to value a portfolio security when it can reasonably conclude, at each time it makes a valuation determination, that the amortized cost price of the portfolio security is approximately the same as the fair value of the security as determined without the use of amortized cost valuation. |
| ■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
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17
| ■ | For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer's financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions. |
If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Fund's valuation policies and procedures, or if information furnished by a pricing service, in the opinion of the valuation committee (“Valuation Committee”), is deemed not representative of the fair value of each security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share.
Fair Valuation Procedures
The Trustees have ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Trustees have appointed a Valuation Committee comprised of officers of the Fund, Federated Investment Management Company (the “Adviser”) and certain of the Adviser's affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.
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Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared daily and paid monthly. Amortization/accretion of premium and discount is included in investment income. Investment income, realized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. The detail of the total fund expense waiver of $903,358 is disclosed in Note 5.
Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Other Service Fees
The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund's Institutional Shares and Premier Shares to unaffiliated financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC may voluntarily reimburse the Fund for other service fees. In addition, unaffiliated third-party financial intermediaries may waive other service fees. This waiver can be modified or terminated at any time. For the six months ended April 30, 2019, other service fees for the Fund were as follows:
| Other Service Fees Incurred | |
| Institutional Shares | $160,078 |
For the six months ended April 30, 2019, the Fund's Premier Shares did not incur other service fees.
Federal Taxes
It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the six months ended April 30, 2019, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of April 30, 2019, tax years 2015 through 2018 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.
When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
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Restricted Securities
The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities, like other securities, are priced in accordance with procedures established by and under the general supervision of the Trustees.
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. The Fund applies investment company accounting and reporting guidance.
3. SHARES OF BENEFICIAL INTEREST
The following tables summarize share activity:
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Institutional Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 551,975,902 | $551,975,902 | 946,254,469 | $946,254,469 |
| Shares issued to shareholders in payment of distributions declared | 2,085,225 | 2,085,225 | 1,994,471 | 1,994,471 |
| Shares redeemed | (547,325,574) | (547,325,574) | (655,473,061) | (655,473,061) |
| NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 6,735,553 | $6,735,553 | 292,775,879 | $292,775,879 |
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Premier Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 738,158,661 | $738,158,661 | 1,499,906,154 | $1,499,906,154 |
| Shares issued to shareholders in payment of distributions declared | 2,211,004 | 2,211,004 | 2,924,450 | 2,924,450 |
| Shares redeemed | (632,504,082) | (632,504,082) | (1,336,485,233) | (1,336,485,233) |
| NET CHANGE RESULTING FROM PREMIER SHARE TRANSACTIONS | 107,865,583 | $107,865,583 | 166,345,371 | $166,345,371 |
| NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 114,601,136 | $114,601,136 | 459,121,250 | $459,121,250 |
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4. FEDERAL TAX INFORMATION
At October 31, 2018, the Fund had a capital loss carryforward of $36 which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, thereby reducing the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, a net capital loss incurred in taxable years beginning after December 22, 2010, retains its character as either short-term or long-term and does not expire. All of the Fund's capital loss carryforwards were incurred in taxable years after December 22, 2010.
The following schedule summarizes the Fund's capital loss carryforwards:
| Short-Term | Long-Term | Total |
| $36 | $— | $36 |
5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.20% of the Fund's average daily net assets. Under the investment advisory contract, which is subject to annual review by the Trustees, the Adviser will waive the amount, limited to the amount of the advisory fee, by which the Fund's aggregate annual operating expenses including the investment advisory fee but excluding interest, taxes, brokerage commissions, expenses of registering or qualifying the Fund and its shares under federal and state laws and regulations, expenses of withholding taxes and extraordinary expenses exceed 0.45% of its average daily net assets. In addition, the Adviser may choose to waive an additional portion of its fee and/or reimburse certain operating expenses of the Fund. For the six months ended April 30, 2019, the Adviser voluntarily waived $903,358 of its fee.
Administrative Fee
Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below:
| Administrative Fee | Average Daily Net Assets of the Investment Complex |
| 0.100% | on assets up to $50 billion |
| 0.075% | on assets over $50 billion |
Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, the annualized fee paid to FAS was 0.080% of average daily net assets of the Fund.
In addition, FAS may charge certain out-of-pocket expenses to the Fund.
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Expense Limitation
In addition to the contractual fee waiver described under “Investment Adviser Fee” above with regard to the Fund's Institutional Shares and Premier Shares, the Adviser and certain of its affiliates (which may include FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding extraordinary expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund's Institutional Shares and Premier Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.20% and 0.15% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) March 1, 2020; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.
Interfund Transactions
During the six months ended April 30, 2019, the Fund engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and amounted to $704,525,000 and $332,660,000, respectively.
Directors'/Trustees' and Miscellaneous Fees
Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Directors'/Trustees' fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
6. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds.
As of April 30, 2019, there were no outstanding loans. During the six months ended April 30, 2019, the program was not utilized.
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Shareholder Expense Example (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2018 to April 30, 2019.
ACTUAL EXPENSES
The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, toestimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and anassumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you shouldnot use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
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Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relativetotal costs of owning different funds.
| Beginning Account Value 11/1/2018 | Ending Account Value 4/30/2019 | Expenses Paid During Period1 | |
| Actual: | |||
| Institutional Shares | $1,000 | $1,007.20 | $1.00 |
| Premier Shares | $1,000 | $1,007.50 | $0.75 |
| Hypothetical (assuming a 5% return before expenses): | |||
| Institutional Shares | $1,000 | $1,023.80 | $1.00 |
| Premier Shares | $1,000 | $1,024.10 | $0.75 |
| 1 | Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
| Institutional Shares | 0.20% |
| Premier Shares | 0.15% |
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Evaluation and Approval of Advisory Contract–May 2018
federated institutional tax-free cash trust (the “Fund”)
At its meetings in May 2018, the Fund's Board of Trustees (the “Board”), including a majority of those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the Fund's investment advisory contract for an additional one-year term. The Board's decision regarding the contract reflects the exercise of its business judgment after considering all of the information received on whether to continue the existing arrangements.
The Board had previously appointed a Senior Officer, whose duties included specified responsibilities relating to the process by which advisory fees are to be charged to a fund advised by Federated Investment Management Company (the “Adviser”) or its affiliates (collectively, “Federated”) (each, a “Federated fund”). The Senior Officer's responsibilities included preparing and furnishing to the Board an annual independent written evaluation that covered topics discussed below. In December 2017, the Senior Officer position was eliminated. Notwithstanding the elimination of the Senior Officer position, at the request of the Independent Trustees, the Fund's Chief Compliance Officer (the CCO) furnished to the Board in advance of its May 2018 meetings an independent written evaluation covering substantially the same topics that had been covered in the Senior Officer's written evaluation in prior years. The Board considered the CCO's independent written evaluation (the “CCO Fee Evaluation Report”), along with other information, in evaluating the reasonableness of the Fund's management fee and in deciding to approve the continuation of the investment advisory contract. Consistent with the former Senior Officer position, the CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees.
The Board also considered judicial decisions concerning allegedly excessive investment advisory fees in making its decision. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser's fiduciary duty with respect to its receipt of compensation from a fund: (1) the nature and quality of the services provided by an adviser to a fund and its shareholders (including the performance of the fund, its benchmark and comparable funds); (2) an adviser's cost of providing the services (including the profitability to an adviser of providing advisory services to a fund); (3) the extent to which an adviser may realize “economies of scale” as a fund grows larger and, if such economies of scale exist, whether they have been shared with a fund and its shareholders or the family of funds; (4) any “fall-out” financial benefits that accrue to an adviser because of its relationship with a fund (including
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research services received from brokers that execute fund trades and any fees paid to affiliates of an adviser for services rendered to a fund); (5) comparative fee and expense structures (including a comparison of fees paid to an adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the Adviser or its affiliates for what might be viewed as like services); and (6) the extent of care, conscientiousness and independence with which the fund's board members perform their duties and their expertise (including whether they are fully informed about all facts the board deems relevant to its consideration of an adviser's services and fees). The Board noted that the Securities and Exchange Commission (SEC) disclosure requirements regarding the basis for the Board's approval of the Fund's investment advisory contract generally align with the factors listed above. The Board was aware of these factors and was guided by them in its review of the Fund's investment advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.
The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds. The Independent Trustees were assisted in their deliberations by independent legal counsel.
In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board received detailed information about the Fund and the Federated organization throughout the year, and in connection with its May meetings at which the Board's formal approval of the advisory and subadvisory contracts occurred. In this regard, Federated provided much of this information at each regular meeting of the Board, and furnished additional information specifically in connection with the May meetings. In the months preceding the May meetings, the Board requested and reviewed written materials prepared by Federated in response to requests on behalf of the Independent Trustees encompassing a wide variety of topics. At the May meetings, in addition to meeting in separate sessions of the Independent Trustees without management present, senior management of the Adviser also met with the Independent Trustees and their counsel to discuss the materials presented and such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the advisory and subadvisory contracts. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose.
The Board's consideration of the investment advisory contract included review of the CCO Fee Evaluation Report, accompanying data and additional information covering the following matters among others: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in terms relative to its particular investment program and certain competitor or “peer group” funds and/or other benchmarks, as appropriate) and comments on the
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reasons for performance; the Fund's investment objectives; the Fund's expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to similar and/or competing funds), with due regard for contractual or voluntary expense limitations; the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial and other risks assumed by the Adviser in sponsoring the Fund; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are generally available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.
While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged by other advisers for managing funds with comparable investment programs, the Board has found the use of such comparisons to be relevant to its deliberations. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund's total expense ratio (i.e., gross and net advisory fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated using data supplied by independent fund ranking organizations (the “Peer Group”). The Board received a description of the composition and methodology used to select the Peer Group. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because it is believed that they are more relevant. For example, other mutual funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles. Also, they are the type of investment vehicle, in fact, chosen and maintained by the Fund's investors. The range of their fees and expenses, therefore, appears to be a relevant indicator of what consumers have found to be reasonable in the marketplace in which the Fund competes.
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The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund's fee rates relative to its Peer Group. In this regard, the Board noted that the contractual advisory fee rate was below the median of the relevant Peer Group and the Board was satisfied that the overall expense structure of the Fund remained competitive.
For comparison, the CCO reviewed the fees charged by Federated for providing advisory services to products other than the Federated funds (e.g., institutional and separate accounts and third-party unaffiliated mutual funds for which Federated serves as sub-adviser) (referenced to as “Comparable Funds/Accounts”). With respect to Comparable Funds/Accounts other than third-party mutual funds, the CCO concluded that they are inherently different products. Those differences include, but are not limited to, different types of targeted investors; different applicable laws and regulations; different legal structures; different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; and the time spent by portfolio managers and their teams, as well as personnel in the Funds Financial Services, Legal, Compliance and Risk Management departments, in reviewing securities pricing, addressing different administrative responsibilities, addressing different degrees of risk associated with management and a variety of different costs. The CCO also reviewed the differences in the nature of the services required for Federated to manage its proprietary mutual fund business versus managing a discrete pool of assets as a sub-adviser to another institution's mutual fund, and that Federated generally performs significant additional services and assumes substantially greater risk in managing the Fund and other Federated funds than in its role as sub-adviser to an unaffiliated third-party mutual fund. The CCO did not consider the fees for providing advisory services to Comparable Funds/Accounts to be determinative in judging the appropriateness of the Federated funds' advisory fees.
Following such evaluation, and full deliberations, the Board concluded that the fees and expenses of the Fund are reasonable and supported renewal of the Fund's investment advisory contract.
The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of the Adviser and its affiliates dedicated to the Fund. In this regard, the Board evaluated, among other things, the Adviser's personnel, experience, track record, overall reputation and willingness to invest in personnel and infrastructure that benefit the Fund. In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and the Adviser's ability and experience in attracting and retaining qualified personnel to service the Fund. The Board noted the compliance program of the Adviser and the compliance-related resources provided to the Fund by the Adviser, including the Adviser's commitment to respond to rulemaking initiatives of the SEC. The Fund's ability to deliver
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competitive performance when compared to its Peer Group was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund's investment program. The Adviser's ability to execute this program was one of the Board's considerations in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services warrant the continuation of the investment advisory contract.
In evaluating the Fund's investment performance, the Board considered performance results in light of the Fund's investment objective, strategies and risks, as disclosed in the Fund's prospectus. The Board considered detailed investment reports on the Fund's performance that were provided to the Board throughout the year and in connection with the May meetings. The CCO also reviewed information regarding the performance of other mutual funds in the Peer Group, noting the CCO's view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases individual funds may exhibit significant and unique differences in their objectives and management techniques when compared to other funds within a Peer Group.
The Fund's performance was above the median of the relevant Peer Group for the one-year period covered by the CCO Fee Evaluation Report. The Board also considered the relatively tight dispersion of performance data with respect to the Fund and its Peer Group.
Following such evaluation, and full deliberations, the Board concluded that the performance of the Fund supported renewal of the Fund's investment advisory contract.
The Board also received financial information about Federated, including information regarding the compensation and ancillary (or “fall-out”) benefits Federated derived from its relationships with the Federated funds. This information covered not only the fees under the investment advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator and distributor). In this regard, the Board considered that certain Federated subsidiaries provide distribution and shareholder services to the Federated funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The information also detailed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a Federated fund to be competitive in the marketplace, the Adviser and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to Federated fund investors and/or indicated to the Board their intention to do so in the future. Moreover, the Board receives regular reporting as to the institution, adjustment or elimination of these voluntary waivers.
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In 2015, the Board approved a reduction of 20 basis points in the contractual advisory fee.
Federated furnished information, requested by the CCO, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the CCO. The CCO noted that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs continues to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable, since a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated fund and may produce unintended consequences. The allocation information, including the CCO's view that fund-by-fund estimations may be unreliable, was considered in the evaluation by the Board.
The Board and the CCO also reviewed information compiled by Federated comparing its profitability information to other publicly held fund management companies, including information regarding profitability trends over time. In this regard, the CCO concluded that Federated's profit margins did not appear to be excessive. The CCO also noted that Federated appeared financially sound, with the resources necessary to fulfill its obligations under its contracts with the Fund.
The CCO Fee Evaluation Report also discussed the notion of possible realization of “economies of scale” as a fund grows larger. In this regard, the Board considered that the Adviser has made significant and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, shareholder services, compliance, internal audit and risk management functions, as well as systems technology (including technology relating to cybersecurity) and that the benefits of these efforts (as well as any economies of scale, should they exist) were likely to be shared with the Federated fund family as a whole. The Board noted that the Adviser's investments in these areas are extensive. In addition, the Board considered that the Adviser and its affiliates have frequently waived fees and/or reimbursed expenses and that this has allowed fund shareholders to share potential economies of scale with shareholders. The Board also considered that such waivers and reimbursements can provide protection from an increase in expenses if a Federated fund's assets decline. Federated, as it does throughout the year, and specifically in connection with the Board's review of the advisory and subadvisory contracts, furnished information relative to revenue sharing or adviser-paid fees. Federated and the CCO noted that this information should be viewed to determine if there was an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, and should not be viewed to determine the appropriateness of advisory fees because it would represent marketing and distribution expenses. The Board also noted the absence of any applicable
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regulatory or industry guidelines on this subject, which (as discussed in the CCO Fee Evaluation Report) is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with “breakpoints” that serve to reduce the fee as a fund attains a certain size.
The CCO stated that his observations and the information accompanying the CCO Fee Evaluation Report supported a finding by the Board that the management fee for the Fund was reasonable. Under these circumstances, no objection was raised to the continuation of, the Fund's investment advisory contract. The CCO also recognized that the Board's evaluation of the Federated funds' advisory and subadvisory arrangements is a continuing and on-going process that is informed by the information that the Board requests and receives from management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its on-going oversight of the Federated funds.
In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an investment advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the investment advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund. The Board concluded that, in light of the factors summarized above, including the nature, quality and scope of the services provided to the Fund by the Adviser and its affiliates, continuation of the investment advisory contract was appropriate.
The Board based its decision to approve the investment advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the continuation of the contract reflects its view that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing arrangement.
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Voting Proxies on Fund Portfolio Securities
A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with the Fund and share class name at www.FederatedInvestors.com/FundInformation. Form N-PX filings are also available at the SEC's website at www.sec.gov.
Portfolio Schedule
The Fund files with the SEC a complete schedule of its portfolio holdings as of the close of each month on “Form N-MFP.” Form N-MFP is available on the SEC's website at www.sec.gov. You may access Form N-MFP via the link to the Fund and share class name at www.FederatedInvestors.com.
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You could lose money by investing in the Fund. Because the share price of the Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
This Report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called “householding”), as permitted by applicable rules. The Fund's “householding” program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the “householding” program. The Fund is also permitted to treat a shareholder as having given consent (“implied consent”) if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to “household” at least sixty (60) days before it begins “householding” and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to “opt out” of “householding.” Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of “householding” at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.
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Federated Institutional Tax-Free Cash Trust
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedInvestors.com
or call 1-800-341-7400.
or call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 608919486
CUSIP 60934N666
CUSIP 60934N666
8070103 (6/19)
Federated is a registered trademark of Federated Investors, Inc.
2019 ©Federated Investors, Inc.
2019 ©Federated Investors, Inc.
Semi-Annual Shareholder Report
April 30, 2019
| Share Class | Ticker | Institutional | FFTXX |
Federated Institutional Tax-Free Cash Trust
A Portfolio of Money Market Obligations Trust
IMPORTANT NOTICE REGARDING REPORT DELIVERY
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4. Your election to receive reports in paper will apply to all funds held with the Fund complex or your financial intermediary.
The Fund operates as a “Floating Net Asset Value” Money Market Fund.
The Share Price will fluctuate. It is possible to lose money by investing in the Fund.
Not FDIC Insured ■ May Lose Value ■ No Bank Guarantee
Portfolio of Investments Summary Tables (unaudited)
At April 30, 2019, the Fund's portfolio composition1 was as follows:
| Security Type | Percentage of Total Net Assets |
| Variable Rate Demand Instruments | 98.4% |
| Commercial Paper | 1.5% |
| Other Assets and Liabilities—Net2 | 0.1% |
| TOTAL | 100.0% |
At April 30, 2019, the Fund's effective maturity schedule3 was as follows:
| Securities With an Effective Maturity of: | Percentage of Total Net Assets |
| 1-7 Days | 99.9% |
| 8-30 Days | 0.0% |
| 31-90 Days | 0.0% |
| 91-180 Days | 0.0% |
| 181 Days or more | 0.0% |
| Other Assets and Liabilities—Net2 | 0.1% |
| TOTAL | 100.0% |
| 1 | See the Fund's Prospectus and Statement of Additional Information for a description of these investments. |
| 2 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
| 3 | Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940, which regulates money market mutual funds. |
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Portfolio of Investments
April 30, 2019 (unaudited)
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—99.9% | ||
| Alabama—8.7% | |||
| $5,600,000 | Alabama HFA MFH (Double Lake Ventures LLC), (2000 Series A: Turtle Lake) Weekly VRDNs, (FNMA LOC), 2.350%, 5/2/2019 | $5,600,000 | |
| 8,000,000 | Mobile County, AL IDA Gulf Opportunity Zone (SSAB Alabama, Inc.), (Series 2011) Weekly VRDNs, (Nordea Bank Abp LOC), 2.410%, 5/2/2019 | 8,000,000 | |
| 4,540,000 | Mobile, AL Downtown Redevelopment Authority (Austal USA, LLC), (Series 2011-A: Gulf Opportunity Zone Bonds) Weekly VRDNs, (Bank of America N.A. LOC), 2.380%, 5/2/2019 | 4,540,000 | |
| 8,750,000 | Mobile, AL Downtown Redevelopment Authority (Austal USA, LLC), (Series 2011-B: Gulf Opportunity Zone Bonds) Weekly VRDNs, (Societe Generale, Paris LOC), 2.400%, 5/2/2019 | 8,750,000 | |
| 5,525,000 | Mobile, AL IDB (HighProv, LLC), (Series 2006) Weekly VRDNs, (FHLB of Dallas LOC), 2.420%, 5/2/2019 | 5,525,000 | |
| 28,025,000 | Tuscaloosa County, AL IDA (Hunt Refining Co.), (Series 2008C: Gulf Opportunity Zone Bonds) Weekly VRDNs, (Bank of Nova Scotia, Toronto LOC), 2.330%, 5/2/2019 | 28,025,000 | |
| 4,950,000 | Tuscaloosa County, AL IDA (Hunt Refining Co.), (Series 2011A: Gulf Opportunity Zone Bonds) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.250%, 5/1/2019 | 4,950,000 | |
| 4,400,000 | Tuscaloosa County, AL IDA (Hunt Refining Co.), (Series 2011I: Gulf Opportunity Zone Bonds) Weekly VRDNs, (Bank of Nova Scotia, Toronto LOC), 2.330%, 5/2/2019 | 4,400,000 | |
| 13,000,000 | Tuscaloosa County, AL IDA (Hunt Refining Co.), (Series 2011J: Gulf Opportunity Zone Bonds) Weekly VRDNs, (Bank of Nova Scotia, Toronto LOC), 2.330%, 5/2/2019 | 13,000,000 | |
| 15,230,000 | Tuscaloosa County, AL Port Authority (Tuscaloosa Riverfront Development, LLC), (Series 2007: Gulf Opportunity Zone Bonds) Weekly VRDNs, (FHLB of Atlanta LOC), 2.350%, 5/2/2019 | 15,230,000 | |
| TOTAL | 98,020,000 | ||
| Arizona—1.0% | |||
| 5,920,000 | Arizona Health Facilities Authority (Dignity Health (Catholic Healthcare West)), (2008 Series A) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.150%, 5/1/2019 | 5,920,000 | |
| 1,625,000 | Arizona Health Facilities Authority (Dignity Health (Catholic Healthcare West)), (2008 Series B) Weekly VRDNs, (Barclays Bank PLC LOC), 2.300%, 5/1/2019 | 1,625,000 | |
| 4,000,000 | Maricopa County, AZ, IDA Solid Waste Disposal (DC Paloma 2 LLC), (Series 2009) Weekly VRDNs, (CoBank, ACB LOC), 2.350%, 5/2/2019 | 4,000,000 | |
| TOTAL | 11,545,000 |
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| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| Connecticut—3.8% | |||
| $4,435,000 | Connecticut State Health & Educational Facilities (CIL Community Resources, Inc.), (Series A) Weekly VRDNs, (HSBC Bank USA, N.A. LOC), 2.330%, 5/2/2019 | $4,435,000 | |
| 3,900,000 | Connecticut State HEFA (Westminster School), (Series C) Weekly VRDNs, (Bank of America N.A. LOC), 2.350%, 5/2/2019 | 3,900,000 | |
| 6,545,000 | Connecticut State HFA (CIL Realty), (Series 2010) Weekly VRDNs, (HSBC Bank USA, N.A. LOC), 2.330%, 5/2/2019 | 6,545,000 | |
| 23,235,000 | Connecticut State HFA, (Subseries C-3) Weekly VRDNs, (TD Bank, N.A. LIQ), 2.400%, 5/2/2019 | 23,235,000 | |
| 4,320,000 | Shelton, CT Housing Authority (Crosby Commons), (Series 1998) Weekly VRDNs, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 2.350%, 5/2/2019 | 4,320,000 | |
| TOTAL | 42,435,000 | ||
| Florida—12.7% | |||
| 4,810,000 | Coconut Creek, FL (Junior Achievement of South Florida, Inc.), (Series 2007) Weekly VRDNs, (TD Bank, N.A. LOC), 2.420%, 5/2/2019 | 4,810,000 | |
| 9,750,000 | Florida HFA (Woodlands Apartments), (Series 1985-SS) Weekly VRDNs, (Northern Trust Co., Chicago, IL LOC), 2.450%, 5/1/2019 | 9,750,000 | |
| 35,755,000 | JEA, FL Electric System, (Series 2008 D) Daily VRDNs, (U.S. Bank, N.A. LIQ), 2.300%, 5/1/2019 | 35,755,000 | |
| 8,770,000 | JEA, FL Water & Sewer System, (2008 Series B-1: Subordinate Revenue Bonds) Weekly VRDNs, (State Street Bank and Trust Co. LIQ), 2.450%, 5/1/2019 | 8,770,000 | |
| 12,055,000 | JEA, FL Water & Sewer System, (2008 Series B: Senior Revenue Bonds) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.150%, 5/1/2019 | 12,055,000 | |
| 2,500,000 | Jacksonville, FL EDC (JEA, FL Electric System), (Series 2000 F-2), CP, (U.S. Bank, N.A. LIQ), 2.350%, Mandatory Tender 5/2/2019 | 2,500,000 | |
| 15,000,000 | Jacksonville, FL EDC (JEA, FL Electric System), (Series 2000-A), CP, (U.S. Bank, N.A. LIQ), 2.350%, Mandatory Tender 5/2/2019 | 15,000,000 | |
| 7,450,000 | Palm Beach County, FL (Zoological Society of Palm Beach, Inc.), (Series 2001) Weekly VRDNs, (Northern Trust Co., Chicago, IL LOC), 2.200%, 5/2/2019 | 7,450,000 | |
| 10,000,000 | Sunshine State Governmental Finance Commission, FL (Miami-Dade County, FL), (Series 2010A) Weekly VRDNs, (MUFG Union Bank, N.A. LOC), 2.330%, 5/2/2019 | 10,000,000 | |
| 37,580,000 | Sunshine State Governmental Finance Commission, FL (Miami-Dade County, FL), (Series 2010B) Weekly VRDNs, (MUFG Union Bank, N.A. LOC), 2.330%, 5/2/2019 | 37,580,000 | |
| TOTAL | 143,670,000 | ||
| Georgia—5.3% | |||
| 8,800,000 | Burke County, GA Development Authority (Oglethorpe Power Corp.), (Series 2010A) Weekly VRDNs, (Bank of America N.A. LOC), 2.450%, 5/1/2019 | 8,800,000 |
Semi-Annual Shareholder Report
3
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| Georgia—continued | |||
| $3,250,000 | Columbus, GA Development Authority (Lumpkin Park Partners, Ltd.), (Series 2008) Weekly VRDNs, (FHLMC LOC), 2.430%, 5/2/2019 | $3,250,000 | |
| 37,750,000 | Fulton County, GA Development Authority (Children's Healthcare of Atlanta, Inc.), (Series 2008) Weekly VRDNs, (PNC Bank, N.A. LIQ), 2.470%, 5/1/2019 | 37,750,000 | |
| 6,850,000 | Monroe County, GA Development Authority Pollution Control (Oglethorpe Power Corp.), (Series 2010A) Weekly VRDNs, (Bank of Montreal LOC), 2.340%, 5/1/2019 | 6,850,000 | |
| 2,000,000 | Paulding County, GA Hopital Authority (Wellstar Health System, Inc.), (Series 2012B) Weekly VRDNs, (Bank of America N.A. LOC), 2.310%, 5/2/2019 | 2,000,000 | |
| 1,500,000 | Private Colleges & Universities Facilities of GA (Emory University), (Series 2005B-2) Weekly VRDNs, 2.300%, 5/2/2019 | 1,500,000 | |
| TOTAL | 60,150,000 | ||
| Illinois—6.1% | |||
| 1,550,000 | Illinois Development Finance Authority (North Park University), (Series 1999) Weekly VRDNs, (U.S. Bank, N.A. LOC), 2.150%, 5/1/2019 | 1,550,000 | |
| 10,100,000 | Illinois Development Finance Authority IDB (Lyric Opera of Chicago) Weekly VRDNs, (BMO Harris Bank, N.A. LOC)/(JPMorgan Chase Bank, N.A. LOC)/(Northern Trust Co., Chicago, IL LOC), 2.130%, 5/1/2019 | 10,100,000 | |
| 19,125,000 | Illinois Finance Authority (Advocate Aurora Health), (Series 2008C-1) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.150%, 5/1/2019 | 19,125,000 | |
| 5,150,000 | Illinois Finance Authority (Advocate Aurora Health), (Series 2008C-2B) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.150%, 5/1/2019 | 5,150,000 | |
| 2,350,000 | Illinois Finance Authority (Carle Foundation), (Series 2009E) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.310%, 5/2/2019 | 2,350,000 | |
| 3,250,000 | Illinois Finance Authority (Clearbrook Corp.), (Series 2008) Weekly VRDNs, (BMO Harris Bank, N.A. LOC), 2.310%, 5/2/2019 | 3,250,000 | |
| 16,115,000 | Illinois Finance Authority (OSF Health Care Systems), (Series 2018B) Daily VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.300%, 5/1/2019 | 16,115,000 | |
| 5,480,000 | Morton Grove Village, IL (Illinois Holocaust Museum and Education Center), (Series 2006) Weekly VRDNs, (Bank of America N.A. LOC), 2.370%, 5/2/2019 | 5,480,000 | |
| 5,995,000 | Southwestern Illinois Development Authority (Molinero, Inc.), (Series 2010) Weekly VRDNs, (BMO Harris Bank, N.A. LOC), 2.310%, 5/2/2019 | 5,995,000 | |
| TOTAL | 69,115,000 | ||
| Indiana—1.5% | |||
| 3,275,000 | Indiana State Finance Authority Health System (Sisters of St. Francis Health Services, Inc.), (Series 2008F) Weekly VRDNs, (Bank of New York Mellon LOC), 2.320%, 5/2/2019 | 3,275,000 | |
| 5,415,000 | Indianapolis, IN MFH (Washington Pointe, LP), (Series 2009A) Weekly VRDNs, (FNMA LOC), 2.420%, 5/3/2019 | 5,415,000 |
Semi-Annual Shareholder Report
4
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| Indiana—continued | |||
| $8,740,000 | Valparaiso, IN EDRB (Pines Village Retirement Community, Inc.), (Series 2008) Weekly VRDNs, (Wells Fargo Bank, N.A. LOC), 2.360%, 5/2/2019 | $8,740,000 | |
| TOTAL | 17,430,000 | ||
| Iowa—3.2% | |||
| 8,000,000 | Iowa Finance Authority (Archer-Daniels-Midland Co.), Midwestern Disaster Area Revenue Bonds (Series 2011) Weekly VRDNs, 2.350%, 5/1/2019 | 8,000,000 | |
| 27,100,000 | Iowa Finance Authority (Cargill, Inc.), Midwestern Disaster Area Economic Development (Series 2011A) Weekly VRDNs, 2.340%, 5/2/2019 | 27,100,000 | |
| 750,000 | Iowa Finance Authority (Trinity Healthcare Credit Group), (Series 2000D) Weekly VRDNs, 2.400%, 5/2/2019 | 750,000 | |
| TOTAL | 35,850,000 | ||
| Louisiana—1.3% | |||
| 8,000,000 | Louisiana Local Government Environmental Facilities CDA (Isidore Newman School), (Series 2002) Weekly VRDNs, (FHLB of Dallas LOC), 2.100%, 5/1/2019 | 8,000,000 | |
| 3,620,000 | Louisiana Local Government Environmental Facilities CDA (The Academy of the Sacred Heart of New Orleans), (Series 2004) Weekly VRDNs, (FHLB of Dallas LOC), 2.100%, 5/1/2019 | 3,620,000 | |
| 3,350,000 | Louisiana Local Government Environmental Facilities CDA (The Christ Episcopal Church in Covington), (Series 2004) Weekly VRDNs, (FHLB of Dallas LOC), 2.100%, 5/1/2019 | 3,350,000 | |
| TOTAL | 14,970,000 | ||
| Maryland—0.1% | |||
| 685,000 | Maryland State Economic Development Corp. (Maryland Academy of Sciences), (Series 2003: Maryland Science Center) Weekly VRDNs, (Bank of America N.A. LOC), 2.480%, 5/2/2019 | 685,000 | |
| Massachusetts—1.1% | |||
| 85,000 | Commonwealth of Massachusetts, (Series 2001 C) Weekly VRDNs, (State Street Bank and Trust Co. LIQ), 2.300%, 5/2/2019 | 85,000 | |
| 5,660,000 | Massachusetts HEFA (Baystate Medical Center), (Series G) Daily VRDNs, (TD Bank, N.A. LOC), 2.270%, 5/1/2019 | 5,660,000 | |
| 6,305,000 | Massachusetts State Housing Finance Agency Housing Revenue (Princeton Westford), (2015 Series A) Weekly VRDNs, (Bank of America N.A. LOC), 2.310%, 5/2/2019 | 6,305,000 | |
| TOTAL | 12,050,000 | ||
| Michigan—2.3% | |||
| 4,840,000 | Lenawee County, MI EDC (Siena Heights University), (Series 2009) Weekly VRDNs, (FHLB of Chicago LOC), 2.360%, 5/2/2019 | 4,840,000 | |
| 4,100,000 | Michigan Strategic Fund (Kroger Co.), (Series 2010) Weekly VRDNs, (MUFG Bank Ltd. LOC), 2.340%, 5/2/2019 | 4,100,000 |
Semi-Annual Shareholder Report
5
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| Michigan—continued | |||
| $12,830,000 | St. Joseph, MI Hospital Finance Authority (Lakeland Hospitals at Niles & St. Joseph Obligated Group), (Series 2002) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(JPMorgan Chase Bank, N.A. LIQ), 2.440%, 5/2/2019 | $12,830,000 | |
| 4,240,000 | St. Joseph, MI Hospital Finance Authority (Lakeland Hospitals at Niles & St. Joseph Obligated Group), (Series 2006) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(JPMorgan Chase Bank, N.A. LIQ), 2.440%, 5/2/2019 | 4,240,000 | |
| TOTAL | 26,010,000 | ||
| Minnesota—2.1% | |||
| 17,520,000 | Minneapolis, MN (Symphony Place) Weekly VRDNs, (FHLMC LOC), 2.390%, 5/2/2019 | 17,520,000 | |
| 1,200,000 | Minnesota State Higher Education Facility Authority (Augsburg University), (Series Six-J2) Weekly VRDNs, (BMO Harris Bank, N.A. LOC), 2.390%, 5/2/2019 | 1,200,000 | |
| 4,650,000 | St. Louis Park, MN (Parkshore Senior Campus, LLC), (Series 2004) Weekly VRDNs, (FHLMC LOC), 2.380%, 5/2/2019 | 4,650,000 | |
| TOTAL | 23,370,000 | ||
| Mississippi—3.0% | |||
| 34,075,000 | Perry County, MS (Georgia-Pacific LLC), (Series 2002) Weekly VRDNs, 2.550%, 5/2/2019 | 34,075,000 | |
| Multi-State—6.7% | |||
| 24,000,000 | Nuveen AMT-Free Municipal Credit Income Fund, (Series 4) Weekly VRDPs, (Citibank N.A., New York LIQ), 2.380%, 5/2/2019 | 24,000,000 | |
| 9,000,000 | Nuveen Enhanced AMT-Free Quality Municipal Income Fund, (Series 3) Weekly VRDPs, (TD Bank, N.A. LIQ), 2.350%, 5/2/2019 | 9,000,000 | |
| 22,100,000 | Nuveen Enhanced AMT-Free Quality Municipal Income Fund, (Series 4) Weekly VRDPs, (Barclays Bank PLC LIQ), 2.380%, 5/2/2019 | 22,100,000 | |
| 20,000,000 | Nuveen Enhanced AMT-Free Quality Municipal Income Fund, VRDP(Series 5-1000) Weekly VRDPs, (Sumitomo Mitsui Banking Corp. LIQ)/(Sumitomo Mitsui Banking Corp. LOC), 2.390%, 5/2/2019 | 20,000,000 | |
| TOTAL | 75,100,000 | ||
| Nebraska—0.1% | |||
| 1,400,000 | Washington County, NE (Cargill, Inc.), (Series 2010) Weekly VRDNs, 2.350%, 5/2/2019 | 1,400,000 | |
| New York—11.6% | |||
| 18,900,000 | New York City, NY Municipal Water Finance Authority, (Series 2001F-1) Daily VRDNs, (Mizuho Bank Ltd. LIQ), 2.350%, 5/1/2019 | 18,900,000 | |
| 18,000,000 | New York City, NY Municipal Water Finance Authority, (Series 2014AA-8) Daily VRDNs, (Mizuho Bank Ltd. LIQ), 2.350%, 5/1/2019 | 18,000,000 |
Semi-Annual Shareholder Report
6
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| New York—continued | |||
| $6,170,000 | New York City, NY Municipal Water Finance Authority, (Series 2015 BB-4) Daily VRDNs, (Barclays Bank PLC LIQ), 2.300%, 5/1/2019 | $6,170,000 | |
| 5,400,000 | New York City, NY Transitional Finance Authority, (2019 Subseries A-4) Daily VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.300%, 5/1/2019 | 5,400,000 | |
| 1,000,000 | New York City, NY Transitional Finance Authority, Fiscal 2018 (Subseries C-6) Weekly VRDNs, (Sumitomo Mitsui Banking Corp. LIQ), 2.380%, 5/2/2019 | 1,000,000 | |
| 19,040,000 | New York City, NY, (Fiscal 2012 Series G-6) Daily VRDNs, (Mizuho Bank Ltd. LOC), 2.320%, 5/1/2019 | 19,040,000 | |
| 2,000,000 | New York City, NY, (Fiscal 2017 Series A Subseries A-5) Daily VRDNs, (Landesbank Hessen-Thuringen LIQ), 2.320%, 5/1/2019 | 2,000,000 | |
| 5,000,000 | New York City, NY, (Fiscal 2018 Series E Subseries E-5) Daily VRDNs, (TD Bank, N.A. LOC), 2.270%, 5/1/2019 | 5,000,000 | |
| 5,325,000 | New York City, NY, (Subseries D-4) Daily VRDNs, (TD Bank, N.A. LOC), 2.270%, 5/1/2019 | 5,325,000 | |
| 5,000,000 | New York State HFA (100 Maiden Lane), (2004 Series A) Weekly VRDNs, (FNMA LOC), 2.350%, 5/1/2019 | 5,000,000 | |
| 1,400,000 | New York State HFA (600 West 42nd Street), (2009 Series A) Weekly VRDNs, (FNMA LOC), 2.390%, 5/1/2019 | 1,400,000 | |
| 19,350,000 | New York State HFA (Midtown West B LLC), (Series 2009A: 505 West 37th Street Housing) Daily VRDNs, (Landesbank Hessen-Thuringen LOC), 2.310%, 5/1/2019 | 19,350,000 | |
| 24,400,000 | New York State HFA (Midtown West B LLC), (Series 2009B: 505 West 37th Street Housing) Daily VRDNs, (Landesbank Hessen-Thuringen LOC), 2.310%, 5/1/2019 | 24,400,000 | |
| TOTAL | 130,985,000 | ||
| North Carolina—3.8% | |||
| 1,850,000 | Charlotte-Mecklenburg Hospital Authority, NC (Atrium Health (previously Carolinas HealthCare) System), (Series 2018G) Daily VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.300%, 5/1/2019 | 1,850,000 | |
| 1,785,000 | North Carolina Capital Facilities Finance Agency (Salem Academy and College), (Series 2005) Weekly VRDNs, (Branch Banking & Trust Co. LOC), 2.310%, 5/2/2019 | 1,785,000 | |
| 39,540,000 | North Carolina Medical Care Commission (Moses H. Cone Memorial), (Series 2004A) Weekly VRDNs, 2.350%, 5/2/2019 | 39,540,000 | |
| TOTAL | 43,175,000 | ||
| Ohio—2.0% | |||
| 18,000,000 | Franklin County, OH Hospital Facility Authority (OhioHealth Corp,), (Series 2011C) Weekly VRDNs, 2.350%, 5/1/2019 | 18,000,000 | |
| 3,400,000 | Hamilton County, OH Hospital Facilities Authority (The Elizabeth Gamble Deaconess Home Association), (Series 2002A) Weekly VRDNs, (Northern Trust Co., Chicago, IL LOC), 2.370%, 5/2/2019 | 3,400,000 |
Semi-Annual Shareholder Report
7
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| Ohio—continued | |||
| $1,210,000 | Lorain County, OH Port Authority (St. Ignatius High School), (Series 2008) Weekly VRDNs, (U.S. Bank, N.A. LOC), 2.370%, 5/2/2019 | $1,210,000 | |
| TOTAL | 22,610,000 | ||
| Pennsylvania—5.5% | |||
| 1,460,000 | Beaver County, PA IDA (Concordia Lutheran Obligated Group), (Series 2018A) Weekly VRDNs, (BMO Harris Bank, N.A. LOC), 2.320%, 5/2/2019 | 1,460,000 | |
| 7,855,000 | Butler County, PA General Authority (Iroquois School District), (Series 2011) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(PNC Bank, N.A. LIQ), 2.390%, 5/2/2019 | 7,855,000 | |
| 13,300,000 | Butler County, PA General Authority (South Park School District), (Series 2011) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(PNC Bank, N.A. LIQ), 2.390%, 5/2/2019 | 13,300,000 | |
| 2,500,000 | Butler County, PA Hospital Authority (Concordia Lutheran Obligated Group), (Series A of 2012) Weekly VRDNs, (BMO Harris Bank, N.A. LOC), 2.320%, 5/2/2019 | 2,500,000 | |
| 200,000 | Butler County, PA Hospital Authority (Concordia Lutheran Obligated Group), (Series A of 2012) Weekly VRDNs, (BMO Harris Bank, N.A. LOC), 2.320%, 5/2/2019 | 200,000 | |
| 6,245,000 | Emmaus, PA General Authority, (Series 1996) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Wells Fargo Bank, N.A. LIQ), 2.330%, 5/1/2019 | 6,245,000 | |
| 700,000 | Lancaster, PA IDA (Willow Valley Retirement Communities), (Series A of 2009) Weekly VRDNs, (PNC Bank, N.A. LOC), 2.370%, 5/2/2019 | 700,000 | |
| 12,765,000 | Mercer County, PA, (Series 2011) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(PNC Bank, N.A. LIQ), 2.390%, 5/2/2019 | 12,765,000 | |
| 5,200,000 | Pennsylvania HFA (Foxwood Manor Apartments), (Series 2008-O) Weekly VRDNs, (GTD by FHLMC), 2.340%, 5/2/2019 | 5,200,000 | |
| 2,000,000 | Philadelphia, PA Gas Works, (8th Series D) Weekly VRDNs, (Royal Bank of Canada LOC), 2.340%, 5/2/2019 | 2,000,000 | |
| 10,000,000 | Pittsburgh & Allegheny County, PA Sports & Exhibition Authority, (Series A of 2007) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(PNC Bank, N.A. LIQ), 2.390%, 5/2/2019 | 10,000,000 | |
| TOTAL | 62,225,000 | ||
| Tennessee—3.0% | |||
| 6,000,000 | Blount County, TN Public Building Authority (Bradley County, TN), (Series E-6-A) Weekly VRDNs, (Branch Banking & Trust Co. LOC), 2.330%, 5/1/2019 | 6,000,000 | |
| 2,200,000 | Metropolitan Nashville Tennessee Airport Authority, (Series 2008A) Weekly VRDNs, (Societe Generale, Paris LOC), 2.330%, 5/1/2019 | 2,200,000 | |
| 17,000,000 | Sevier County, TN Public Building Authority (Sevier County, TN), Local Government Public Improvement Bonds (Series VII-B-1) Weekly VRDNs, (Bank of America N.A. LOC), 2.310%, 5/1/2019 | 17,000,000 |
Semi-Annual Shareholder Report
8
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| Tennessee—continued | |||
| $8,675,000 | Sevier County, TN Public Building Authority, (Series V-B-1) Weekly VRDNs, (Branch Banking & Trust Co. LOC), 2.330%, 5/2/2019 | $8,675,000 | |
| TOTAL | 33,875,000 | ||
| Texas—6.4% | |||
| 2,800,000 | Bexar County, TX Housing Finance Corp. (Summit Hills Apartments), (Series 2005A) Weekly VRDNs, (FHLMC LOC), 2.390%, 5/2/2019 | 2,800,000 | |
| 15,450,000 | Harris County, TX Education Facilities Finance Corp. (Methodist Hospital, Harris County, TX), (Series 2008C-1) Daily VRDNs, 2.300%, 5/1/2019 | 15,450,000 | |
| 2,750,000 | Harris County, TX Education Facilities Finance Corp. (Texas Medical Center), (Series 2008B-1) Daily VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.300%, 5/1/2019 | 2,750,000 | |
| 8,980,000 | Harris County, TX HFDC (Methodist Hospital, Harris County, TX), (Subseries 2008A-1) Daily VRDNs, 2.300%, 5/1/2019 | 8,980,000 | |
| 14,335,000 | Harris County, TX Hospital Distict, Senior Lien Refunding Revenue Bonds (Series 2010) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.340%, 5/2/2019 | 14,335,000 | |
| 13,050,000 | Tarrant County, TX HFDC (Cook Children's Medical Center), (Series 2010B) Weekly VRDNs, 2.280%, 5/2/2019 | 13,050,000 | |
| 14,500,000 | Texas State, Veterans Bonds (Series 2011B) Weekly VRDNs, (State Street Bank and Trust Co. LIQ), 2.300%, 5/2/2019 | 14,500,000 | |
| TOTAL | 71,865,000 | ||
| Utah—2.4% | |||
| 25,000,000 | Emery County, UT (Pacificorp), PCRB (Series 1994) Weekly VRDNs, 2.320%, 5/1/2019 | 25,000,000 | |
| 2,000,000 | St. George, UT IDRB (Apogee Enterprises, Inc.), (Series 2010) Weekly VRDNs, (Wells Fargo Bank, N.A. LOC), 2.350%, 5/2/2019 | 2,000,000 | |
| TOTAL | 27,000,000 | ||
| Virginia—2.8% | |||
| 2,670,000 | Fairfax County, VA IDA (Inova Health System), (Series 2016C) Weekly VRDNs, 2.320%, 5/2/2019 | 2,670,000 | |
| 1,600,000 | Fairfax County, VA IDA (Inova Health System), (Series 2018C) Weekly VRDNs, 2.350%, 5/2/2019 | 1,600,000 | |
| 3,775,000 | Hampton Roads, VA Sanitation District, (Series 2016B) Weekly VRDNs, 2.250%, 5/2/2019 | 3,775,000 | |
| 940,000 | Loudoun County, VA IDA (Howard Hughes Medical Institute), (Series 2003F) Weekly VRDNs, 2.470%, 5/1/2019 | 940,000 | |
| 3,510,000 | Loudoun County, VA IDA (Howard Hughes Medical Institute), (Series 2009B) Weekly VRDNs, 2.410%, 5/1/2019 | 3,510,000 | |
| 19,170,000 | Norfolk, VA EDA (Sentara Health Systems Obligation Group), (Series 2016B) Weekly VRDNs, 2.350%, 5/1/2019 | 19,170,000 | |
| TOTAL | 31,665,000 |
Semi-Annual Shareholder Report
9
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| West Virginia—2.1% | |||
| $23,700,000 | West Virginia State Hospital Finance Authority (Cabell Huntington Hospital), (Series 2008A) Weekly VRDNs, (Branch Banking & Trust Co. LOC), 2.320%, 5/2/2019 | $23,700,000 | |
| Wisconsin—0.7% | |||
| 7,640,000 | Wisconsin Public Finance Authority (RPD Holdings, LLC and HGI Wisconsin, LLC), Midwestern Disaster Area Revenue Bonds (Series 2011) Weekly VRDNs, (AgriBank FCB LOC), 2.410%, 5/2/2019 | 7,640,000 | |
| Wyoming—0.6% | |||
| 7,260,000 | Sweetwater County, WY PCRB (Pacificorp), PCRB (Series 1994) Weekly VRDNs, 2.480%, 5/1/2019 | 7,260,000 | |
| TOTAL INVESTMENT IN SECURITIES—99.9% (AT IDENTIFIED COST)2 | 1,127,875,000 | ||
| OTHER ASSETS AND LIABILITIES - NET—0.1%3 | 1,575,865 | ||
| TOTAL NET ASSETS—100% | $1,129,450,865 |
At April 30, 2019, the Fund held no securities that are subject to the federal alternative minimum tax (AMT).
| 1 | Current rate and current maturity or next reset date shown for floating rate notes and variable rate notes/demand instruments. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
| 2 | Also represents cost for federal tax purposes. |
| 3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Note: The categories of investments are shown as a percentage of total net assets at April 30, 2019.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
As of April 30, 2019, all investments of the Fund utilized level 2 inputs, in valuing the Fund's assets carried at fair value.
Semi-Annual Shareholder Report
10
The following acronyms are used throughout this portfolio:
| CDA | —Community Development Authority |
| CP | —Commercial Paper |
| EDA | —Economic Development Authority |
| EDC | —Economic Development Commission |
| EDRB | —Economic Development Revenue Bond |
| FHLB | —Federal Home Loan Bank |
| FHLMC | —Federal Home Loan Mortgage Corporation |
| FNMA | —Federal National Mortgage Association |
| GTD | —Guaranteed |
| HEFA | —Health and Education Facilities Authority |
| HFA | —Housing Finance Authority |
| HFDC | —Health Facility Development Corporation |
| IDA | —Industrial Development Authority |
| IDB | —Industrial Development Bond |
| IDRB | —Industrial Development Revenue Bond |
| INS | —Insured |
| LIQ | —Liquidity Agreement |
| LOC | —Letter of Credit |
| MFH | —Multi-Family Housing |
| PCRB | —Pollution Control Revenue Bond |
| VRDNs | —Variable Rate Demand Notes |
| VRDPs | —Variable Rate Demand Preferreds |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
11
Financial Highlights–Institutional Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | Period Ended 10/31/20161 | ||
| 2018 | 2017 | |||
| Net Asset Value, Beginning of Period | $1.0000 | $1.0000 | $1.0000 | $1.0000 |
| Income From Investment Operations: | ||||
| Net investment income | 0.0072 | 0.0114 | 0.0059 | 0.0020 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.0072 | 0.0114 | 0.0059 | 0.0020 |
| Less Distributions: | ||||
| Distributions from net investment income | (0.0072) | (0.0114) | (0.0059) | (0.0020) |
| Net Asset Value, End of Period | $1.0000 | $1.0000 | $1.0000 | $1.0000 |
| Total Return2 | 0.72% | 1.15% | 0.59% | 0.20% |
| Ratios to Average Net Assets: | ||||
| Net expenses | 0.20%3 | 0.20% | 0.20% | 0.20%3 |
| Net investment income | 1.44%3 | 1.17% | 0.59% | 0.54%3 |
| Expense waiver/reimbursement4 | 0.16%3 | 0.18% | 0.20% | 0.22%3 |
| Supplemental Data: | ||||
| Net assets, end of period (000 omitted) | $600,779 | $594,047 | $301,268 | $231,159 |
| 1 | Reflects operations for the period from February 26, 2016 (date of initial public investment) to October 31, 2016. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
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Statement of Assets and Liabilities
April 30, 2019 (unaudited)
| Assets: | ||
| Investment in securities, at identified cost and fair value | $1,127,875,000 | |
| Cash | 650,630 | |
| Income receivable | 1,832,815 | |
| Receivable for shares sold | 1,485,245 | |
| TOTAL ASSETS | 1,131,843,690 | |
| Liabilities: | ||
| Payable for shares redeemed | $1,609,884 | |
| Income distribution payable | 689,010 | |
| Payable for investment adviser fee (Note 5) | 1,147 | |
| Payable for administrative fees (Note 5) | 2,459 | |
| Payable for other service fees (Notes 2 and 5) | 25,000 | |
| Accrued expenses (Note 5) | 65,325 | |
| TOTAL LIABILITIES | 2,392,825 | |
| Net assets for 1,129,449,951 shares outstanding | $1,129,450,865 | |
| Net Assets Consist of: | ||
| Paid-in capital | $1,129,449,951 | |
| Total distributable earnings (loss) | 914 | |
| TOTAL NET ASSETS | $1,129,450,865 | |
| Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
| Institutional Shares: | ||
| $600,778,894 ÷ 600,779,743 shares outstanding, no par value, unlimited shares authorized | $1.0000 | |
| Premier Shares: | ||
| $528,671,971 ÷ 528,670,208 shares outstanding, no par value, unlimited shares authorized | $1.0000 |
See Notes which are an integral part of the Financial Statements
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Statement of Operations
Six Months Ended April 30, 2019 (unaudited)
| Investment Income: | |||
| Interest | $9,096,883 | ||
| Expenses: | |||
| Investment adviser fee (Note 5) | $1,101,200 | ||
| Administrative fee (Note 5) | 439,170 | ||
| Custodian fees | 19,898 | ||
| Transfer agent fee | 25,172 | ||
| Directors'/Trustees' fees (Note 5) | 3,730 | ||
| Auditing fees | 10,116 | ||
| Legal fees | 5,496 | ||
| Portfolio accounting fees | 86,989 | ||
| Other service fees (Notes 2 and 5) | 160,078 | ||
| Share registration costs | 37,768 | ||
| Printing and postage | 9,199 | ||
| Miscellaneous (Note 5) | 17,499 | ||
| TOTAL EXPENSES | 1,916,315 | ||
| Waiver of investment adviser fee (Note 5) | (903,358) | ||
| Net expenses | 1,012,957 | ||
| Net investment income | 8,083,926 | ||
| Change in net assets resulting from operations | $8,083,926 |
See Notes which are an integral part of the Financial Statements
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Statement of Changes in Net Assets
| Six Months Ended (unaudited) 4/30/2019 | Year Ended 10/31/2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations: | ||
| Net investment income | $8,083,926 | $8,844,391 |
| CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 8,083,926 | 8,844,391 |
| Distributions to Shareholders: | ||
| Institutional Shares | (4,630,186) | (4,698,956) |
| Premier Shares | (3,459,958) | (4,138,425) |
| CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (8,090,144) | (8,837,381) |
| Share Transactions: | ||
| Proceeds from sale of shares | 1,290,134,563 | 2,446,160,623 |
| Net asset value of shares issued to shareholders in payment of distributions declared | 4,296,229 | 4,918,921 |
| Cost of shares redeemed | (1,179,829,656) | (1,991,958,294) |
| CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 114,601,136 | 459,121,250 |
| Change in net assets | 114,594,918 | 459,128,260 |
| Net Assets: | ||
| Beginning of period | 1,014,855,947 | 555,727,687 |
| End of period | $1,129,450,865 | $1,014,855,947 |
See Notes which are an integral part of the Financial Statements
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Notes to Financial Statements
April 30, 2019 (unaudited)
1. ORGANIZATION
Money Market Obligations Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of 20 portfolios. The financial statements included herein are only those of Federated Institutional Tax-Free Cash Trust (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers two classes of shares: Institutional Shares and Premier Shares. The financial highlights of the Premier Shares are presented separately. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to provide dividend income exempt from federal regular income taxes while seeking relative stability of principal. Interest income from the Fund's investments may be subject to the federal AMT for individuals, and state and local taxes.
The Fund operates as an institutional money market fund. As an institutional money market fund, the Fund: (1) will not be limited to institutional investors, but will continue to be available to retail investors; (2) will utilize current market-based prices (except as otherwise generally permitted to value individual portfolio securities with remaining maturities of 60 days or less at amortized cost in accordance with Securities and Exchange Commission (SEC) rules and guidance) to value its portfolio securities and transact at a floating net asset value (NAV) that uses four decimal-place precision ($1.0000); and (3) has adopted policies and procedures to impose liquidity fees on redemptions and/or temporary redemption gates in the event that the Fund's weekly liquid assets were to fall below a designated threshold, if the Fund's Board of Trustees (the “Trustees”) determine such liquidity fees or redemption gates are in the best interest of the Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
| ■ | Fixed-income securities with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
| ■ | Fixed-income securities with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium), unless the issuer's creditworthiness is impaired or other factors indicate that amortized cost is not an accurate estimate of the investment's fair value, in which case it would be valued in the same manner as a longer-term security. The Fund may only use this method to value a portfolio security when it can reasonably conclude, at each time it makes a valuation determination, that the amortized cost price of the portfolio security is approximately the same as the fair value of the security as determined without the use of amortized cost valuation. |
| ■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
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| ■ | For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer's financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions. |
If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Fund's valuation policies and procedures, or if information furnished by a pricing service, in the opinion of the valuation committee (“Valuation Committee”), is deemed not representative of the fair value of each security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share.
Fair Valuation Procedures
The Trustees have ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Trustees have appointed a Valuation Committee comprised of officers of the Fund, Federated Investment Management Company (the “Adviser”) and certain of the Adviser's affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.
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Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared daily and paid monthly. Amortization/accretion of premium and discount is included in investment income. Investment income, realized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. The detail of the total fund expense waiver of $903,358 is disclosed in Note 5.
Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Other Service Fees
The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund's Institutional Shares and Premier Shares to unaffiliated financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC may voluntarily reimburse the Fund for other service fees. In addition, unaffiliated third-party financial intermediaries may waive other service fees. This waiver can be modified or terminated at any time. For the six months ended April 30, 2019, other service fees for the Fund were as follows:
| Other Service Fees Incurred | |
| Institutional Shares | $160,078 |
For the six months ended April 30, 2019, the Fund's Premier Shares did not incur other service fees.
Federal Taxes
It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the six months ended April 30, 2019, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of April 30, 2019, tax years 2015 through 2018 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.
When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
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Restricted Securities
The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities, like other securities, are priced in accordance with procedures established by and under the general supervision of the Trustees.
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. The Fund applies investment company accounting and reporting guidance.
3. SHARES OF BENEFICIAL INTEREST
The following tables summarize share activity:
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Institutional Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 551,975,902 | $551,975,902 | 946,254,469 | $946,254,469 |
| Shares issued to shareholders in payment of distributions declared | 2,085,225 | 2,085,225 | 1,994,471 | 1,994,471 |
| Shares redeemed | (547,325,574) | (547,325,574) | (655,473,061) | (655,473,061) |
| NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 6,735,553 | $6,735,553 | 292,775,879 | $292,775,879 |
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Premier Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 738,158,661 | $738,158,661 | 1,499,906,154 | $1,499,906,154 |
| Shares issued to shareholders in payment of distributions declared | 2,211,004 | 2,211,004 | 2,924,450 | 2,924,450 |
| Shares redeemed | (632,504,082) | (632,504,082) | (1,336,485,233) | (1,336,485,233) |
| NET CHANGE RESULTING FROM PREMIER SHARE TRANSACTIONS | 107,865,583 | $107,865,583 | 166,345,371 | $166,345,371 |
| NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 114,601,136 | $114,601,136 | 459,121,250 | $459,121,250 |
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4. FEDERAL TAX INFORMATION
At October 31, 2018, the Fund had a capital loss carryforward of $36 which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, thereby reducing the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, a net capital loss incurred in taxable years beginning after December 22, 2010, retains its character as either short-term or long-term and does not expire. All of the Fund's capital loss carryforwards were incurred in taxable years after December 22, 2010.
The following schedule summarizes the Fund's capital loss carryforwards:
| Short-Term | Long-Term | Total |
| $36 | $— | $36 |
5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.20% of the Fund's average daily net assets. Under the investment advisory contract, which is subject to annual review by the Trustees, the Adviser will waive the amount, limited to the amount of the advisory fee, by which the Fund's aggregate annual operating expenses including the investment advisory fee but excluding interest, taxes, brokerage commissions, expenses of registering or qualifying the Fund and its shares under federal and state laws and regulations, expenses of withholding taxes and extraordinary expenses exceed 0.45% of its average daily net assets. In addition, the Adviser may choose to waive an additional portion of its fee and/or reimburse certain operating expenses of the Fund. For the six months ended April 30, 2019, the Adviser voluntarily waived $903,358 of its fee.
Administrative Fee
Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below:
| Administrative Fee | Average Daily Net Assets of the Investment Complex |
| 0.100% | on assets up to $50 billion |
| 0.075% | on assets over $50 billion |
Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, the annualized fee paid to FAS was 0.080% of average daily net assets of the Fund.
In addition, FAS may charge certain out-of-pocket expenses to the Fund.
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Expense Limitation
In addition to the contractual fee waiver described under “Investment Adviser Fee” above with regard to the Fund's Institutional Shares and Premier Shares, the Adviser and certain of its affiliates (which may include FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding extraordinary expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund's Institutional Shares and Premier Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.20% and 0.15% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) March 1, 2020; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.
Interfund Transactions
During the six months ended April 30, 2019, the Fund engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and amounted to $704,525,000 and $332,660,000, respectively.
Directors'/Trustees' and Miscellaneous Fees
Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Directors'/Trustees' fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
6. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds.
As of April 30, 2019, there were no outstanding loans. During the six months ended April 30, 2019, the program was not utilized.
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Shareholder Expense Example (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2018 to April 30, 2019.
ACTUAL EXPENSES
The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, toestimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and anassumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you shouldnot use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relativetotal costs of owning different funds.
| Beginning Account Value 11/1/2018 | Ending Account Value 4/30/2019 | Expenses Paid During Period1 | |
| Actual: | $1,000 | $1,007.20 | $1.00 |
| Hypothetical (assuming a 5% return before expenses): | $1,000 | $1,023.80 | $1.00 |
| 1 | Expenses are equal to the Fund's annualized net expense ratio of 0.20%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). |
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Evaluation and Approval of Advisory Contract–May 2018
federated institutional tax-free cash trust (the “Fund”)
At its meetings in May 2018, the Fund's Board of Trustees (the “Board”), including a majority of those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the Fund's investment advisory contract for an additional one-year term. The Board's decision regarding the contract reflects the exercise of its business judgment after considering all of the information received on whether to continue the existing arrangements.
The Board had previously appointed a Senior Officer, whose duties included specified responsibilities relating to the process by which advisory fees are to be charged to a fund advised by Federated Investment Management Company (the “Adviser”) or its affiliates (collectively, “Federated”) (each, a “Federated fund”). The Senior Officer's responsibilities included preparing and furnishing to the Board an annual independent written evaluation that covered topics discussed below. In December 2017, the Senior Officer position was eliminated. Notwithstanding the elimination of the Senior Officer position, at the request of the Independent Trustees, the Fund's Chief Compliance Officer (the CCO) furnished to the Board in advance of its May 2018 meetings an independent written evaluation covering substantially the same topics that had been covered in the Senior Officer's written evaluation in prior years. The Board considered the CCO's independent written evaluation (the “CCO Fee Evaluation Report”), along with other information, in evaluating the reasonableness of the Fund's management fee and in deciding to approve the continuation of the investment advisory contract. Consistent with the former Senior Officer position, the CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees.
The Board also considered judicial decisions concerning allegedly excessive investment advisory fees in making its decision. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser's fiduciary duty with respect to its receipt of compensation from a fund: (1) the nature and quality of the services provided by an adviser to a fund and its shareholders (including the performance of the fund, its benchmark and comparable funds); (2) an adviser's cost of providing the services (including the profitability to an adviser of providing advisory services to a fund); (3) the extent to which an adviser may realize “economies of scale” as a fund grows larger and, if such economies of scale exist, whether they have been shared with a fund and its shareholders or the family of funds; (4) any “fall-out” financial benefits that accrue to an adviser because of its relationship with a fund (including
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research services received from brokers that execute fund trades and any fees paid to affiliates of an adviser for services rendered to a fund); (5) comparative fee and expense structures (including a comparison of fees paid to an adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the Adviser or its affiliates for what might be viewed as like services); and (6) the extent of care, conscientiousness and independence with which the fund's board members perform their duties and their expertise (including whether they are fully informed about all facts the board deems relevant to its consideration of an adviser's services and fees). The Board noted that the Securities and Exchange Commission (SEC) disclosure requirements regarding the basis for the Board's approval of the Fund's investment advisory contract generally align with the factors listed above. The Board was aware of these factors and was guided by them in its review of the Fund's investment advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.
The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds. The Independent Trustees were assisted in their deliberations by independent legal counsel.
In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board received detailed information about the Fund and the Federated organization throughout the year, and in connection with its May meetings at which the Board's formal approval of the advisory and subadvisory contracts occurred. In this regard, Federated provided much of this information at each regular meeting of the Board, and furnished additional information specifically in connection with the May meetings. In the months preceding the May meetings, the Board requested and reviewed written materials prepared by Federated in response to requests on behalf of the Independent Trustees encompassing a wide variety of topics. At the May meetings, in addition to meeting in separate sessions of the Independent Trustees without management present, senior management of the Adviser also met with the Independent Trustees and their counsel to discuss the materials presented and such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the advisory and subadvisory contracts. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose.
The Board's consideration of the investment advisory contract included review of the CCO Fee Evaluation Report, accompanying data and additional information covering the following matters among others: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in terms relative to its particular investment program and certain competitor or “peer group” funds and/or other benchmarks, as appropriate) and comments on the
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reasons for performance; the Fund's investment objectives; the Fund's expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to similar and/or competing funds), with due regard for contractual or voluntary expense limitations; the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial and other risks assumed by the Adviser in sponsoring the Fund; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are generally available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.
While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged by other advisers for managing funds with comparable investment programs, the Board has found the use of such comparisons to be relevant to its deliberations. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund's total expense ratio (i.e., gross and net advisory fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated using data supplied by independent fund ranking organizations (the “Peer Group”). The Board received a description of the composition and methodology used to select the Peer Group. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because it is believed that they are more relevant. For example, other mutual funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles. Also, they are the type of investment vehicle, in fact, chosen and maintained by the Fund's investors. The range of their fees and expenses, therefore, appears to be a relevant indicator of what consumers have found to be reasonable in the marketplace in which the Fund competes.
Semi-Annual Shareholder Report
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The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund's fee rates relative to its Peer Group. In this regard, the Board noted that the contractual advisory fee rate was below the median of the relevant Peer Group and the Board was satisfied that the overall expense structure of the Fund remained competitive.
For comparison, the CCO reviewed the fees charged by Federated for providing advisory services to products other than the Federated funds (e.g., institutional and separate accounts and third-party unaffiliated mutual funds for which Federated serves as sub-adviser) (referenced to as “Comparable Funds/Accounts”). With respect to Comparable Funds/Accounts other than third-party mutual funds, the CCO concluded that they are inherently different products. Those differences include, but are not limited to, different types of targeted investors; different applicable laws and regulations; different legal structures; different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; and the time spent by portfolio managers and their teams, as well as personnel in the Funds Financial Services, Legal, Compliance and Risk Management departments, in reviewing securities pricing, addressing different administrative responsibilities, addressing different degrees of risk associated with management and a variety of different costs. The CCO also reviewed the differences in the nature of the services required for Federated to manage its proprietary mutual fund business versus managing a discrete pool of assets as a sub-adviser to another institution's mutual fund, and that Federated generally performs significant additional services and assumes substantially greater risk in managing the Fund and other Federated funds than in its role as sub-adviser to an unaffiliated third-party mutual fund. The CCO did not consider the fees for providing advisory services to Comparable Funds/Accounts to be determinative in judging the appropriateness of the Federated funds' advisory fees.
Following such evaluation, and full deliberations, the Board concluded that the fees and expenses of the Fund are reasonable and supported renewal of the Fund's investment advisory contract.
The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of the Adviser and its affiliates dedicated to the Fund. In this regard, the Board evaluated, among other things, the Adviser's personnel, experience, track record, overall reputation and willingness to invest in personnel and infrastructure that benefit the Fund. In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and the Adviser's ability and experience in attracting and retaining qualified personnel to service the Fund. The Board noted the compliance program of the Adviser and the compliance-related resources provided to the Fund by the Adviser, including the Adviser's commitment to respond to rulemaking initiatives of the SEC. The Fund's ability to deliver
Semi-Annual Shareholder Report
26
competitive performance when compared to its Peer Group was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund's investment program. The Adviser's ability to execute this program was one of the Board's considerations in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services warrant the continuation of the investment advisory contract.
In evaluating the Fund's investment performance, the Board considered performance results in light of the Fund's investment objective, strategies and risks, as disclosed in the Fund's prospectus. The Board considered detailed investment reports on the Fund's performance that were provided to the Board throughout the year and in connection with the May meetings. The CCO also reviewed information regarding the performance of other mutual funds in the Peer Group, noting the CCO's view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases individual funds may exhibit significant and unique differences in their objectives and management techniques when compared to other funds within a Peer Group.
The Fund's performance was above the median of the relevant Peer Group for the one-year period covered by the CCO Fee Evaluation Report. The Board also considered the relatively tight dispersion of performance data with respect to the Fund and its Peer Group.
Following such evaluation, and full deliberations, the Board concluded that the performance of the Fund supported renewal of the Fund's investment advisory contract.
The Board also received financial information about Federated, including information regarding the compensation and ancillary (or “fall-out”) benefits Federated derived from its relationships with the Federated funds. This information covered not only the fees under the investment advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator and distributor). In this regard, the Board considered that certain Federated subsidiaries provide distribution and shareholder services to the Federated funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The information also detailed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a Federated fund to be competitive in the marketplace, the Adviser and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to Federated fund investors and/or indicated to the Board their intention to do so in the future. Moreover, the Board receives regular reporting as to the institution, adjustment or elimination of these voluntary waivers.
Semi-Annual Shareholder Report
27
In 2015, the Board approved a reduction of 20 basis points in the contractual advisory fee.
Federated furnished information, requested by the CCO, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the CCO. The CCO noted that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs continues to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable, since a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated fund and may produce unintended consequences. The allocation information, including the CCO's view that fund-by-fund estimations may be unreliable, was considered in the evaluation by the Board.
The Board and the CCO also reviewed information compiled by Federated comparing its profitability information to other publicly held fund management companies, including information regarding profitability trends over time. In this regard, the CCO concluded that Federated's profit margins did not appear to be excessive. The CCO also noted that Federated appeared financially sound, with the resources necessary to fulfill its obligations under its contracts with the Fund.
The CCO Fee Evaluation Report also discussed the notion of possible realization of “economies of scale” as a fund grows larger. In this regard, the Board considered that the Adviser has made significant and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, shareholder services, compliance, internal audit and risk management functions, as well as systems technology (including technology relating to cybersecurity) and that the benefits of these efforts (as well as any economies of scale, should they exist) were likely to be shared with the Federated fund family as a whole. The Board noted that the Adviser's investments in these areas are extensive. In addition, the Board considered that the Adviser and its affiliates have frequently waived fees and/or reimbursed expenses and that this has allowed fund shareholders to share potential economies of scale with shareholders. The Board also considered that such waivers and reimbursements can provide protection from an increase in expenses if a Federated fund's assets decline. Federated, as it does throughout the year, and specifically in connection with the Board's review of the advisory and subadvisory contracts, furnished information relative to revenue sharing or adviser-paid fees. Federated and the CCO noted that this information should be viewed to determine if there was an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, and should not be viewed to determine the appropriateness of advisory fees because it would represent marketing and distribution expenses. The Board also noted the absence of any applicable
Semi-Annual Shareholder Report
28
regulatory or industry guidelines on this subject, which (as discussed in the CCO Fee Evaluation Report) is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with “breakpoints” that serve to reduce the fee as a fund attains a certain size.
The CCO stated that his observations and the information accompanying the CCO Fee Evaluation Report supported a finding by the Board that the management fee for the Fund was reasonable. Under these circumstances, no objection was raised to the continuation of, the Fund's investment advisory contract. The CCO also recognized that the Board's evaluation of the Federated funds' advisory and subadvisory arrangements is a continuing and on-going process that is informed by the information that the Board requests and receives from management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its on-going oversight of the Federated funds.
In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an investment advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the investment advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund. The Board concluded that, in light of the factors summarized above, including the nature, quality and scope of the services provided to the Fund by the Adviser and its affiliates, continuation of the investment advisory contract was appropriate.
The Board based its decision to approve the investment advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the continuation of the contract reflects its view that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing arrangement.
Semi-Annual Shareholder Report
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Voting Proxies on Fund Portfolio Securities
A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with the Fund and share class name at www.FederatedInvestors.com/FundInformation. Form N-PX filings are also available at the SEC's website at www.sec.gov.
Portfolio Schedule
The Fund files with the SEC a complete schedule of its portfolio holdings as of the close of each month on “Form N-MFP.” Form N-MFP is available on the SEC's website at www.sec.gov. You may access Form N-MFP via the link to the Fund and share class name at www.FederatedInvestors.com.
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You could lose money by investing in the Fund. Because the share price of the Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
This Report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called “householding”), as permitted by applicable rules. The Fund's “householding” program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the “householding” program. The Fund is also permitted to treat a shareholder as having given consent (“implied consent”) if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to “household” at least sixty (60) days before it begins “householding” and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to “opt out” of “householding.” Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of “householding” at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.
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Federated Institutional Tax-Free Cash Trust
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedInvestors.com
or call 1-800-341-7400.
or call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 608919486
Q454417 (6/19)
Federated is a registered trademark of Federated Investors, Inc.
2019 ©Federated Investors, Inc.
2019 ©Federated Investors, Inc.
Semi-Annual Shareholder Report
April 30, 2019
| TickerGAMXX |
Federated Georgia Municipal Cash Trust
A Portfolio of Money Market Obligations Trust
IMPORTANT NOTICE REGARDING REPORT DELIVERY
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4. Your election to receive reports in paper will apply to all funds held with the Fund complex or your financial intermediary.
The Fund is a Retail Money Market Fund and is only available for investment to accounts beneficially owned by natural persons.
Not FDIC Insured ■ May Lose Value ■ No Bank Guarantee
Portfolio of Investments Summary Tables (unaudited)
At April 30, 2019, the Fund's portfolio composition1 was as follows:
| Security Type | Percentage of Total Net Assets |
| Variable Rate Demand Instruments | 74.3% |
| Municipal Notes | 22.7% |
| Commercial Paper | 2.7% |
| Other Assets and Liabilities—Net2 | 0.3% |
| TOTAL | 100.0% |
At April 30, 2019, the Fund's effective maturity schedule3 was as follows:
| Securities With an Effective Maturity of: | Percentage of Total Net Assets |
| 1-7 Days | 75.3% |
| 8-30 Days | 5.7% |
| 31-90 Days | 12.6% |
| 91-180 Days | 3.4% |
| 181 Days or more | 2.7% |
| Other Assets and Liabilities—Net2 | 0.3% |
| TOTAL | 100.0% |
| 1 | See the Fund's Prospectus and Statement of Additional Information for a description of these investments. |
| 2 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
| 3 | Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940, which regulates money market mutual funds. |
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Portfolio of Investments
April 30, 2019 (unaudited)
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—99.7% | ||
| Georgia—99.7% | |||
| $ 2,335,000 | Atlanta, GA Water & Wastewater, Tender Option Bond Trust Receipts (2015-XF0234) Weekly VRDNs, (Royal Bank of Canada LIQ), 2.330%, 5/2/2019 | $2,335,000 | |
| 9,750,000 | Atlanta, GA, Urban Residential Finance Authority (Columbia at Sylvan Hills Apartments), (Series 2006) Weekly VRDNs, (FNMA LOC), 2.430%, 5/2/2019 | 9,750,000 | |
| 4,850,000 | Atlanta, GA, Urban Residential Finance Authority (West End Housing Development), (Series 1995) Weekly VRDNs, (FNMA LOC), 2.450%, 5/2/2019 | 4,850,000 | |
| 5,400,000 | Bulloch County, GA Development Authority (Apogee Enterprises, Inc.), (Series 1999) Weekly VRDNs, (Wells Fargo Bank, N.A. LOC), 2.440%, 5/2/2019 | 5,400,000 | |
| 3,300,000 | Cherokee County, GA Development Authority (Goodwill of North Georgia, Inc.), (Series 2008) Weekly VRDNs, (SunTrust Bank LOC), 2.350%, 5/1/2019 | 3,300,000 | |
| 4,000,000 | Cobb County, GA School District, (Series 2019) TANs, 3.000%, 12/18/2019 | 4,033,201 | |
| 9,515,000 | Columbus, GA Development Authority (Avalon Apartments LP), (Series 2008) Weekly VRDNs, (FNMA LOC), 2.430%, 5/2/2019 | 9,515,000 | |
| 6,750,000 | Columbus, GA Development Authority (Lumpkin Park Partners, Ltd.), (Series 2008) Weekly VRDNs, (FHLMC LOC), 2.430%, 5/2/2019 | 6,750,000 | |
| 3,425,000 | Dalton-Whitfield County, GA Joint Development Authority (Hamilton Health Care System Obligated Group), CDI Net Liquidity (2018-ZM0577) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.350%, 5/2/2019 | 3,425,000 | |
| 600,000 | Fitzgerald & Ben Hill County, GA Development Authority (Agri-Products, Inc.), (Series 2007) Weekly VRDNs, (U.S. Bank, N.A. LOC), 2.510%, 5/2/2019 | 600,000 | |
| 1,000,000 | Fulton County, GA Development Authority (Children's Healthcare of Atlanta, Inc.), (Series 2008) Weekly VRDNs, (PNC Bank, N.A. LIQ), 2.470%, 5/1/2019 | 1,000,000 | |
| 600,000 | Fulton County, GA Development Authority (Donnellan School, Inc.), (Series 2000) Weekly VRDNs, (Bank of New York Mellon LOC), 2.400%, 5/2/2019 | 600,000 | |
| 9,340,000 | Fulton County, GA, Solar Eclipse (Series 2017-0007) TOBs, (U.S. Bank, N.A. LIQ), 2.500%, Optional Tender 6/27/2019 | 9,340,000 | |
| 5,750,000 | Georgia State HFA, Tender Option Bond Trust Certificates (Series 2018-ZF2614) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.320%, 5/2/2019 | 5,750,000 | |
| 1,955,000 | Georgia State HFA, Tender Option Bond Trust Receipts (Series 2018-ZF0653) Weekly VRDNs, (Bank of America N.A. LIQ), 2.340%, 5/2/2019 | 1,955,000 |
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2
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| Georgia—continued | |||
| $1,245,000 | Heard County, GA Development Authority (Oglethorpe Power Corp.), (Series 2009A) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.150%, 5/1/2019 | $1,245,000 | |
| 19,865,000 | Kennesaw, GA Development Authority (Lakeside Vista Apartments), (Series 2004) Weekly VRDNs, (FNMA LOC), 2.430%, 5/2/2019 | 19,865,000 | |
| 4,350,000 | Main Street Natural Gas, Inc., GA, (Series 2010 A1) TOBs, (Royal Bank of Canada LOC), 2.400%, Optional Tender 6/3/2019 | 4,350,000 | |
| 5,225,000 | Main Street Natural Gas, Inc., GA, (Series 2010 A2) TOBs, (Royal Bank of Canada LOC), 2.400%, Optional Tender 6/3/2019 | 5,225,000 | |
| 4,525,000 | Metropolitan Atlanta Rapid Transit Authority, GA, Solar Eclipse (Series 2017-0047) TOBs, (U.S. Bank, N.A. LIQ), 2.430%, Optional Tender 5/16/2019 | 4,525,000 | |
| 4,350,000 | Monroe County, GA Development Authority (Florida Power & Light Co.), (Series 2017) Daily VRDNs, 2.360%, 5/1/2019 | 4,350,000 | |
| 3,800,000 | Monroe County, GA Development Authority Pollution Control (Oglethorpe Power Corp.), (Series 2010A) Weekly VRDNs, (Bank of Montreal LOC), 2.340%, 5/1/2019 | 3,800,000 | |
| 4,000,000 | Municipal Electric Authority of Georgia, (Series 1985A), CP, (Barclays Bank PLC LOC), 1.700%, Mandatory Tender 5/8/2019 | 4,000,000 | |
| 900,000 | Municipal Electric Authority of Georgia, (Series 2008B) Weekly VRDNs, (PNC Bank, N.A. LOC), 2.300%, 5/1/2019 | 900,000 | |
| 5,060,000 | Paulding County, GA, Solar Eclipse (Series 2017-0060) TOBs, (U.S. Bank, N.A. LIQ), 2.500%, Optional Tender 10/24/2019 | 5,060,000 | |
| 2,000,000 | Private Colleges & Universities Facilities of GA (Emory University), (Series 2005C-1) Weekly VRDNs, 2.340%, 5/2/2019 | 2,000,000 | |
| 1,000,000 | Roswell, GA Housing Authority (Belcourt Ltd.), MFH Refunding Revenue Bonds (Series 1988A) Weekly VRDNs, (Northern Trust Co., Chicago, IL LOC), 2.450%, 5/1/2019 | 1,000,000 | |
| 1,805,000 | Savannah, GA EDA (Calvary Day School), (Series 2006) Weekly VRDNs, (SunTrust Bank LOC), 2.350%, 5/1/2019 | 1,805,000 | |
| 2,100,000 | Savannah, GA EDA (Home Depot, Inc.), (Series 1995A) Weekly VRDNs, 2.340%, 5/1/2019 | 2,100,000 | |
| 400,000 | Savannah, GA EDA (Home Depot, Inc.), (Series B) Weekly VRDNs, (SunTrust Bank LOC), 2.340%, 5/1/2019 | 400,000 | |
| 5,550,000 | Savannah, GA Housing Authority (Bradley Pointe Apartments), (Series 2003) Weekly VRDNs, (KeyBank, N.A. LOC), 2.490%, 5/2/2019 | 5,550,000 | |
| 1,540,000 | Troup County, GA Public Finance Authority, (Series 2018), 3.000%, 5/1/2019 | 1,540,000 | |
| 2,985,000 | Wayne County, GA, IDA (Sierra International Machinery LLC), (Series 2011) Weekly VRDNs, (Branch Banking & Trust Co. LOC), 2.360%, 5/2/2019 | 2,985,000 |
Semi-Annual Shareholder Report
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| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| Georgia—continued | |||
| $10,350,000 | Willacoochee, GA Development Authority (Langboard, Inc.), (Series 1997) Weekly VRDNs, (FHLB of Atlanta LOC), 2.450%, 5/2/2019 | $10,350,000 | |
| TOTAL INVESTMENT IN SECURITIES—99.7% (AT AMORTIZED COST)2 | 149,653,201 | ||
| OTHER ASSETS AND LIABILITIES - NET—0.3%3 | 465,854 | ||
| TOTAL NET ASSETS—100% | $150,119,055 |
Securities that are subject to the federal alternative minimum tax (AMT) represent 50.6% of the portfolio as calculated based upon total market value.
| 1 | Current rate and current maturity or next reset date shown for floating rate notes and variable rate notes/demand instruments. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
| 2 | Also represents cost for federal tax purposes. |
| 3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Note: The categories of investments are shown as a percentage of total net assets at April 30, 2019.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
In valuing the Fund's assets as of April 30, 2019, all investments of the Fund are valued using amortized cost, which is a methodology utilizing Level 2 inputs.
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The following acronyms are used throughout this portfolio:
| EDA | —Economic Development Authority |
| FHLB | —Federal Home Loan Bank |
| FHLMC | —Federal Home Loan Mortgage Corporation |
| FNMA | —Federal National Mortgage Association |
| HFA | —Housing Finance Authority |
| IDA | —Industrial Development Authority |
| LIQ | —Liquidity Agreement |
| LOC | —Letter of Credit |
| MFH | —Multi-Family Housing |
| TANs | —Tax Anticipation Notes |
| TOBs | —Tender Option Bonds |
| VRDNs | —Variable Rate Demand Notes |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
5
Financial Highlights
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.006 | 0.009 | 0.003 | 0.001 | 0.0001 | 0.0001 |
| Net realized gain | 0.0001 | — | 0.0001 | 0.0001 | 0.0001 | — |
| TOTAL FROM INVESTMENT OPERATIONS | 0.006 | 0.009 | 0.003 | 0.001 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.006) | (0.009) | (0.003) | (0.001) | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | — | (0.000)1 | (0.000)1 | (0.000)1 | — | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.006) | (0.009) | (0.003) | (0.001) | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.58% | 0.88% | 0.35% | 0.11% | 0.01% | 0.02% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 0.53%3 | 0.53% | 0.53% | 0.32%4 | 0.12% | 0.13% |
| Net investment income | 1.17%3 | 0.87% | 0.35% | 0.05% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.30%3 | 0.34% | 0.44% | 0.64% | 0.79% | 0.78% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $150,119 | $175,860 | $156,551 | $98,313 | $168,721 | $180,311 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.32% after taking into account this expense reduction. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
6
Statement of Assets and Liabilities
April 30, 2019 (unaudited)
| Assets: | ||
| Investment in securities, at amortized cost and fair value | $149,653,201 | |
| Cash | 56,955 | |
| Income receivable | 425,741 | |
| Receivable for shares sold | 850,028 | |
| TOTAL ASSETS | 150,985,925 | |
| Liabilities: | ||
| Payable for shares redeemed | $773,923 | |
| Payable for investment adviser fee (Note 4) | 1,143 | |
| Payable for administrative fees (Note 4) | 326 | |
| Payable for transfer agent fee | 22,419 | |
| Payable for other service fees (Note 2) | 33,292 | |
| Accrued expenses (Note 4) | 35,767 | |
| TOTAL LIABILITIES | 866,870 | |
| Net assets for 150,118,271 shares outstanding | $150,119,055 | |
| Net Assets Consist of: | ||
| Paid-in capital | $150,118,271 | |
| Total distributable earnings (loss) | 784 | |
| TOTAL NET ASSETS | $150,119,055 | |
| Net Asset Value, Offering Price and Redemption Proceeds Per Share: | ||
| $150,119,055 ÷ 150,118,271 shares outstanding, no par value, unlimited shares authorized | $1.00 |
See Notes which are an integral part of the Financial Statements
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Statement of Operations
Six Months Ended April 30, 2019 (unaudited)
| Investment Income: | |||
| Interest | $1,583,014 | ||
| Expenses: | |||
| Investment adviser fee (Note 4) | $278,697 | ||
| Administrative fee (Note 4) | 74,120 | ||
| Custodian fees | 3,153 | ||
| Transfer agent fee | 95,410 | ||
| Directors'/Trustees' fees (Note 4) | 873 | ||
| Auditing fees | 10,116 | ||
| Legal fees | 5,807 | ||
| Portfolio accounting fees | 38,308 | ||
| Other service fees (Note 2) | 232,247 | ||
| Share registration costs | 24,309 | ||
| Printing and postage | 12,492 | ||
| Miscellaneous (Note 4) | 2,718 | ||
| TOTAL EXPENSES | 778,250 | ||
| Waiver and Reimbursement: | |||
| Waiver of investment adviser fee (Note 4) | $(278,471) | ||
| Reimbursement of other operating expenses (Note 4) | (2,863) | ||
| TOTAL WAIVER AND REIMBURSEMENT | (281,334) | ||
| Net expenses | 496,916 | ||
| Net investment income | 1,086,098 | ||
| Net realized gain on investments | 388 | ||
| Change in net assets resulting from operations | $1,086,486 |
See Notes which are an integral part of the Financial Statements
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Statement of Changes in Net Assets
| Six Months Ended (unaudited) 4/30/2019 | Year Ended 10/31/2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations: | ||
| Net investment income | $1,086,098 | $1,732,461 |
| Net realized gain | 388 | — |
| CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 1,086,486 | 1,732,461 |
| Distributions to Shareholders: | (1,086,106) | (1,748,623) |
| Share Transactions: | ||
| Proceeds from sale of shares | 199,276,152 | 367,529,786 |
| Net asset value of shares issued to shareholders in payment of distributions declared | 1,080,263 | 1,743,686 |
| Cost of shares redeemed | (226,097,329) | (349,948,926) |
| CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (25,740,914) | 19,324,546 |
| Change in net assets | (25,740,534) | 19,308,384 |
| Net Assets: | ||
| Beginning of period | 175,859,589 | 156,551,205 |
| End of period | $150,119,055 | $175,859,589 |
See Notes which are an integral part of the Financial Statements
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Notes to Financial Statements
April 30, 2019 (unaudited)
1. ORGANIZATION
Money Market Obligations Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of 20 portfolios. The financial statements included herein are only those of Federated Georgia Municipal Cash Trust (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The investment objective of the Fund is to provide current income exempt from federal regular income tax and the income tax imposed by the state of Georgia consistent with stability of principal and liquidity. Interest income from the Fund's investments may be subject to the federal AMT for individuals.
The Fund operates as a retail money market fund. As a retail money market fund, the Fund: (1) will generally continue to use amortized cost to value its portfolio securities and transact at a stable $1.00 net asset value (NAV); (2) has adopted policies and procedures reasonably designed to limit investments in the Fund to accounts beneficially owned by natural persons as required for a retail money market fund by Rule 2a-7 under the Act; and (3) has adopted policies and procedures to impose liquidity fees on redemptions and/or temporary redemption gates in the event that the Fund's weekly liquid assets were to fall below a designated threshold, if the Fund's Board of Trustees (the “Trustees”) determine such liquidity fees or redemption gates are in the best interest of the Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
Securities are valued at amortized cost. Under the amortized cost valuation method, an investment is valued initially at its cost as determined in accordance with GAAP. The Fund then adjusts the amount of interest income accrued each day over the term of the investment to account for any difference between the initial cost of the investment and the amount payable at its maturity. If amortized cost is determined not to approximate fair value, the value of the portfolio securities will be determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share.
The Trustees have ultimate responsibility for determining the fair value of investments. The Trustees have appointed a valuation committee (“Valuation Committee”) comprised of officers of the Fund, Federated Investment Management Company (the “Adviser”) and certain of the Adviser's affiliated companies to assist in determining fair value of securities and in overseeing the comparison of amortized cost to market-based value. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of monitoring the relationship of market-based value and amortized cost. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic
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reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs and assumptions), and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared daily and paid monthly. Amortization/accretion of premium and discount is included in investment income. The detail of the total fund expense waiver and reimbursement of $281,334 is disclosed in Note 4.
Other Service Fees
The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund to unaffiliated financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees.
Federal Taxes
It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the six months ended April 30, 2019, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of April 30, 2019, tax years 2015 through 2018 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.
When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Restricted Securities
The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in
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transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at amortized cost in accordance with Rule 2a-7 under the Act.
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. The Fund applies investment company accounting and reporting guidance.
3. SHARES OF BENEFICIAL INTEREST
The following table summarizes share activity:
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |
| Shares sold | 199,276,152 | 367,529,786 |
| Shares issued to shareholders in payment of distributions declared | 1,080,263 | 1,743,686 |
| Shares redeemed | (226,097,329) | (349,948,926) |
| NET CHANGE RESULTING FROM FUND SHARE TRANSACTIONS | (25,740,914) | 19,324,546 |
4. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.30% of the Fund's average daily net assets. Prior to February 28, 2018, the annual advisory fee was 0.40% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund. For the six months ended April 30, 2019, the Adviser voluntarily waived $278,471 of its fee and voluntarily reimbursed $2,863 of other operating expenses.
Administrative Fee
Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below:
| Administrative Fee | Average Daily Net Assets of the Investment Complex |
| 0.100% | on assets up to $50 billion |
| 0.075% | on assets over $50 billion |
Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, the annualized fee paid to FAS was 0.080% of average daily net assets of the Fund.
In addition, FAS may charge certain out-of-pocket expenses to the Fund.
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Expense Limitation
Due to the possibility of changes in market conditions and other factors, there can be no assurance that the level of waivers/reimbursement/reduction of Fund expenses reflected in the financial highlights will be maintained in the future. However, the Adviser and certain of its affiliates (which may include FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding extraordinary expenses, interest expense and proxy-related expenses paid by the Fund, if any) paid by the Fund's Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.53% (the “Fee Limit”) up to but not including the later of (the “Termination Date”): (a) March 1, 2020; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.
Interfund Transactions
During the six months ended April 30, 2019, the Fund engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and amounted to $121,210,000 and $123,045,000, respectively.
Directors'/Trustees' and Miscellaneous Fees
Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Directors'/Trustees' fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
5. CONCENTRATION OF RISK
Since the Fund invests a substantial portion of its assets in issuers located in one state, it will be more susceptible to factors adversely affecting issuers of that state than would be a comparable tax-exempt mutual fund that invests nationally. In order to reduce the credit risk associated with such factors, at April 30, 2019, 68.3% of the securities in the portfolio of investments were backed by letters of credit or bond insurance of various financial institutions and financial guaranty assurance agencies. The largest percentage of investments insured by or supported (backed) by a letter of credit from any one institution or agency, was 29.4% of total investments.
6. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of April 30, 2019, there were no outstanding loans. During the six months ended April 30, 2019, the program was not utilized.
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Shareholder Expense Example (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2018 to April 30, 2019.
ACTUAL EXPENSES
The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, toestimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and anassumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you shouldnot use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relativetotal costs of owning different funds.
| Beginning Account Value 11/1/2018 | Ending Account Value 4/30/2019 | Expenses Paid During Period1 | |
| Actual | $1,000 | $1,005.80 | $2.64 |
| Hypothetical (assuming a 5% return before expenses) | $1,000 | $1,022.20 | $2.66 |
| 1 | Expenses are equal to the Fund's annualized net expense ratio of 0.53%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). |
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Evaluation and Approval of Advisory Contract–May 2018
Federated Georgia municipal cash trust (the “Fund”)
At its meetings in May 2018, the Fund's Board of Trustees (the “Board”), including a majority of those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the Fund's investment advisory contract for an additional one-year term. The Board's decision regarding the contract reflects the exercise of its business judgment after considering all of the information received on whether to continue the existing arrangements.
The Board had previously appointed a Senior Officer, whose duties included specified responsibilities relating to the process by which advisory fees are to be charged to a fund advised by Federated Investment Management Company (the “Adviser”) or its affiliates (collectively, “Federated”) (each, a “Federated fund”). The Senior Officer's responsibilities included preparing and furnishing to the Board an annual independent written evaluation that covered topics discussed below. In December 2017, the Senior Officer position was eliminated. Notwithstanding the elimination of the Senior Officer position, at the request of the Independent Trustees, the Fund's Chief Compliance Officer (the CCO) furnished to the Board in advance of its May 2018 meetings an independent written evaluation covering substantially the same topics that had been covered in the Senior Officer's written evaluation in prior years. The Board considered the CCO's independent written evaluation (the “CCO Fee Evaluation Report”), along with other information, in evaluating the reasonableness of the Fund's management fee and in deciding to approve the continuation of the investment advisory contract. Consistent with the former Senior Officer position, the CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees.
The Board also considered judicial decisions concerning allegedly excessive investment advisory fees in making its decision. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser's fiduciary duty with respect to its receipt of compensation from a fund: (1) the nature and quality of the services provided by an adviser to a fund and its shareholders (including the performance of the fund, its benchmark and comparable funds); (2) an adviser's cost of providing the services (including the profitability to an adviser of providing advisory services to a fund); (3) the extent to which an adviser may realize “economies of scale” as a fund grows larger and, if such economies of scale exist, whether they have been shared with a fund and its shareholders or the family of funds; (4) any “fall-out” financial benefits that accrue to an adviser because of its relationship with a fund (including
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research services received from brokers that execute fund trades and any fees paid to affiliates of an adviser for services rendered to a fund); (5) comparative fee and expense structures (including a comparison of fees paid to an adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the Adviser or its affiliates for what might be viewed as like services); and (6) the extent of care, conscientiousness and independence with which the fund's board members perform their duties and their expertise (including whether they are fully informed about all facts the board deems relevant to its consideration of an adviser's services and fees). The Board noted that the Securities and Exchange Commission (SEC) disclosure requirements regarding the basis for the Board's approval of the Fund's investment advisory contract generally align with the factors listed above. The Board was aware of these factors and was guided by them in its review of the Fund's investment advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.
The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds. The Independent Trustees were assisted in their deliberations by independent legal counsel.
In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board received detailed information about the Fund and the Federated organization throughout the year, and in connection with its May meetings at which the Board's formal approval of the advisory and subadvisory contracts occurred. In this regard, Federated provided much of this information at each regular meeting of the Board, and furnished additional information specifically in connection with the May meetings. In the months preceding the May meetings, the Board requested and reviewed written materials prepared by Federated in response to requests on behalf of the Independent Trustees encompassing a wide variety of topics. At the May meetings, in addition to meeting in separate sessions of the Independent Trustees without management present, senior management of the Adviser also met with the Independent Trustees and their counsel to discuss the materials presented and such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the advisory and subadvisory contracts. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose.
The Board's consideration of the investment advisory contract included review of the CCO Fee Evaluation Report, accompanying data and additional information covering the following matters among others: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in terms relative to its particular investment program and certain competitor or “peer group” funds and/or other benchmarks, as appropriate) and comments on the
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reasons for performance; the Fund's investment objectives; the Fund's expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to similar and/or competing funds), with due regard for contractual or voluntary expense limitations; the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial and other risks assumed by the Adviser in sponsoring the Fund; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are generally available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.
While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged by other advisers for managing funds with comparable investment programs, the Board has found the use of such comparisons to be relevant to its deliberations. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund's total expense ratio (i.e., gross and net advisory fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated using data supplied by independent fund ranking organizations (the “Peer Group”). The Board received a description of the composition and methodology used to select the Peer Group. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because it is believed that they are more relevant. For example, other mutual funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles. Also, they are the type of investment vehicle, in fact, chosen and maintained by the Fund's investors. The range of their fees and expenses, therefore, appears to be a relevant indicator of what consumers have found to be reasonable in the marketplace in which the Fund competes.
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It was noted in the materials for the Board meeting that for the period covered by the CCO Fee Evaluation Report, the Fund's investment advisory fee was waived in its entirety. The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund with the Adviser and noted the position of the Fund's fee rates relative to its Peer Group. In this regard, the Board noted that the contractual advisory fee rate was above the median of the relevant Peer Group, but the Board noted that the investment advisory fee was waived in its entirety and that the overall expense structure of the Fund remained competitive in the context of other factors considered by the Board.
For comparison, the CCO reviewed the fees charged by Federated for providing advisory services to products other than the Federated funds (e.g., institutional and separate accounts and third-party unaffiliated mutual funds for which Federated serves as sub-adviser) (referenced to as “Comparable Funds/Accounts”). With respect to Comparable Funds/Accounts other than third-party mutual funds, the CCO concluded that they are inherently different products. Those differences include, but are not limited to, different types of targeted investors; different applicable laws and regulations; different legal structures; different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; and the time spent by portfolio managers and their teams, as well as personnel in the Funds Financial Services, Legal, Compliance and Risk Management departments, in reviewing securities pricing, addressing different administrative responsibilities, addressing different degrees of risk associated with management and a variety of different costs. The CCO also reviewed the differences in the nature of the services required for Federated to manage its proprietary mutual fund business versus managing a discrete pool of assets as a sub-adviser to another institution's mutual fund, and that Federated generally performs significant additional services and assumes substantially greater risk in managing the Fund and other Federated funds than in its role as sub-adviser to an unaffiliated third-party mutual fund. The CCO did not consider the fees for providing advisory services to Comparable Funds/Accounts to be determinative in judging the appropriateness of the Federated funds' advisory fees.
Following such evaluation, and full deliberations, the Board concluded that the fees and expenses of the Fund are reasonable and supported renewal of the Fund's investment advisory contract.
The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of the Adviser and its affiliates dedicated to the Fund. In this regard, the Board evaluated, among other things, the Adviser's personnel, experience, track record, overall reputation and willingness to invest in personnel and infrastructure that benefit the Fund. In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and the Adviser's ability and experience in attracting
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and retaining qualified personnel to service the Fund. The Board noted the compliance program of the Adviser and the compliance-related resources provided to the Fund by the Adviser, including the Adviser's commitment to respond to rulemaking initiatives of the SEC. The Fund's ability to deliver competitive performance when compared to its Peer Group was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund's investment program. The Adviser's ability to execute this program was one of the Board's considerations in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services warrant the continuation of the investment advisory contract.
In evaluating the Fund's investment performance, the Board considered performance results in light of the Fund's investment objective, strategies and risks, as disclosed in the Fund's prospectus. The Board considered detailed investment reports on the Fund's performance that were provided to the Board throughout the year and in connection with the May meetings. The CCO also reviewed information regarding the performance of other mutual funds in the Peer Group, noting the CCO's view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases individual funds may exhibit significant and unique differences in their objectives and management techniques when compared to other funds within a Peer Group.
The Fund's performance fell below the median of the relevant Peer Group for the one-year period covered by the CCO Fee Evaluation Report. The Board discussed the Fund's performance with the Adviser and recognized the efforts being taken by the Adviser. The Board also considered the relatively tight dispersion of performance data with respect to the Fund and its Peer Group.
Following such evaluation, and full deliberations, the Board concluded that the performance of the Fund supported renewal of the Fund's investment advisory contract.
The Board also received financial information about Federated, including information regarding the compensation and ancillary (or “fall-out”) benefits Federated derived from its relationships with the Federated funds. This information covered not only the fees under the investment advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator and distributor). In this regard, the Board considered that certain Federated subsidiaries provide distribution and shareholder services to the Federated funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The information also detailed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a Federated fund to be competitive in the marketplace, the Adviser and its affiliates frequently waived
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fees and/or reimbursed expenses and have disclosed to Federated fund investors and/or indicated to the Board their intention to do so in the future. Moreover, the Board receives regular reporting as to the institution, adjustment or elimination of these voluntary waivers.
In 2018, the Board approved a reduction of 10 basis points in the contractual advisory fee.
Federated furnished information, requested by the CCO, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the CCO. The CCO noted that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs continues to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable, since a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated fund and may produce unintended consequences. The allocation information, including the CCO's view that fund-by-fund estimations may be unreliable, was considered in the evaluation by the Board.
The Board and the CCO also reviewed information compiled by Federated comparing its profitability information to other publicly held fund management companies, including information regarding profitability trends over time. In this regard, the CCO concluded that Federated's profit margins did not appear to be excessive. The CCO also noted that Federated appeared financially sound, with the resources necessary to fulfill its obligations under its contracts with the Fund.
The CCO Fee Evaluation Report also discussed the notion of possible realization of “economies of scale” as a fund grows larger. In this regard, the Board considered that the Adviser has made significant and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, shareholder services, compliance, internal audit and risk management functions, as well as systems technology (including technology relating to cybersecurity) and that the benefits of these efforts (as well as any economies of scale, should they exist) were likely to be shared with the Federated fund family as a whole. The Board noted that the Adviser's investments in these areas are extensive. In addition, the Board considered that the Adviser and its affiliates have frequently waived fees and/or reimbursed expenses and that this has allowed fund shareholders to share potential economies of scale with shareholders. The Board also considered that such waivers and reimbursements can provide protection from an increase in expenses if a Federated fund's assets decline. Federated, as it does throughout the year, and specifically in connection with the Board's review of the advisory and subadvisory contracts, furnished information relative to revenue sharing or adviser-paid fees. Federated and the CCO noted that this information should be viewed to determine if there was an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, and should not be viewed to determine the
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appropriateness of advisory fees because it would represent marketing and distribution expenses. The Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which (as discussed in the CCO Fee Evaluation Report) is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with “breakpoints” that serve to reduce the fee as a fund attains a certain size.
The CCO stated that his observations and the information accompanying the CCO Fee Evaluation Report supported a finding by the Board that the management fee for the Fund was reasonable. Under these circumstances, no objection was raised to the continuation of, the Fund's investment advisory contract. The CCO also recognized that the Board's evaluation of the Federated funds' advisory and subadvisory arrangements is a continuing and on-going process that is informed by the information that the Board requests and receives from management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its on-going oversight of the Federated funds.
In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an investment advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the investment advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund. The Board concluded that, in light of the factors summarized above, including the nature, quality and scope of the services provided to the Fund by the Adviser and its affiliates, continuation of the investment advisory contract was appropriate.
The Board based its decision to approve the investment advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the continuation of the contract reflects its view that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing arrangement.
Semi-Annual Shareholder Report
21
Voting Proxies on Fund Portfolio Securities
A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with the Fund and share class name at www.FederatedInvestors.com/FundInformation. Form N-PX filings are also available at the SEC's website at www.sec.gov.
Portfolio Schedule
The Fund files with the SEC a complete schedule of its portfolio holdings as of the close of each month on “Form N-MFP.” Form N-MFP is available on the SEC's website at www.sec.gov. You may access Form N-MFP via the link to the Fund and share class name at www.FederatedInvestors.com.
Semi-Annual Shareholder Report
22
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
This Report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called “householding”), as permitted by applicable rules. The Fund's “householding” program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the “householding” program. The Fund is also permitted to treat a shareholder as having given consent (“implied consent”) if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to “household” at least sixty (60) days before it begins “householding” and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to “opt out” of “householding.” Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of “householding” at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.
Semi-Annual Shareholder Report
23
Federated Georgia Municipal Cash Trust
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedInvestors.com
or call 1-800-341-7400.
or call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 60934N328
G01478-01 (6/19)
Federated is a registered trademark of Federated Investors, Inc.
2019 ©Federated Investors, Inc.
2019 ©Federated Investors, Inc.
Semi-Annual Shareholder Report
April 30, 2019
| Share Class | Ticker | Wealth | MAWXX | Service | MMCXX | Cash Series | FMCXX |
Federated Massachusetts Municipal Cash Trust
A Portfolio of Money Market Obligations Trust
IMPORTANT NOTICE REGARDING REPORT DELIVERY
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4. Your election to receive reports in paper will apply to all funds held with the Fund complex or your financial intermediary.
The Fund is a Retail Money Market Fund and is only available for investment to accounts beneficially owned by natural persons.
Not FDIC Insured ■ May Lose Value ■ No Bank Guarantee
Portfolio of Investments Summary Tables (unaudited)
At April 30, 2019, the Fund's portfolio composition1 was as follows:
| Security Type | Percentage of Total Net Assets |
| Variable Rate Demand Instruments | 65.6% |
| Municipal Notes | 22.5% |
| Commercial Paper | 11.1% |
| Other Assets and Liabilities—Net2 | 0.8% |
| TOTAL | 100.0% |
At April 30, 2019, the Fund's effective maturity schedule3 was as follows:
| Securities With an Effective Maturity of: | Percentage of Total Net Assets |
| 1-7 Days | 66.2% |
| 8-30 Days | 16.2% |
| 31-90 Days | 9.1% |
| 91-180 Days | 6.3% |
| 181 Days or more | 1.4% |
| Other Assets and Liabilities—Net2 | 0.8% |
| TOTAL | 100.0% |
| 1 | See the Fund's Prospectus and Statement of Additional Information for a description of these investments. |
| 2 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
| 3 | Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940, which regulates money market mutual funds. |
Semi-Annual Shareholder Report
1
Portfolio of Investments
April 30, 2019 (unaudited)
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—99.2% | ||
| Massachusetts—99.2% | |||
| $800,000 | Ashland, MA, (Series B) BANs, 2.550%, 1/23/2020 | $802,577 | |
| 1,380,000 | Athol-Royalston, MA Regional School District BANs, 2.750%, 7/3/2019 | 1,381,631 | |
| 1,800,000 | Auburn, MA Water District BANs, 2.750%, 8/7/2019 | 1,802,358 | |
| 3,255,000 | Billerica, MA, Solar Eclipse (2017-0027) TOBs, (U.S. Bank, N.A. LIQ), 2.430%, Optional Tender 5/9/2019 | 3,255,000 | |
| 500,000 | Commonwealth of Massachusetts, (Series 2000A) Weekly VRDNs, (Citibank N.A., New York LIQ), 2.360%, 5/2/2019 | 500,000 | |
| 1,500,000 | Commonwealth of Massachusetts, Consolidated Loan (Series 2006A) Daily VRDNs, (Barclays Bank PLC LIQ), 2.250%, 5/1/2019 | 1,500,000 | |
| 1,360,000 | Gardner, MA BANs, 2.750%, 6/28/2019 | 1,361,695 | |
| 5,800,000 | Massachusetts Bay Transportation Authority Sales Tax Revenue, Clipper Tax-Exempt Certificates Trust (Series 2009-47) Weekly VRDNs, (State Street Bank and Trust Co. LIQ), 2.340%, 5/2/2019 | 5,800,000 | |
| 2,725,000 | Massachusetts Development Finance Agency (CIL Realty of Massachusetts), (Series 2013) Weekly VRDNs, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 2.340%, 5/2/2019 | 2,725,000 | |
| 3,527,000 | Massachusetts Development Finance Agency, (Issue 4), CP, (FHLB of Boston LOC), 2.300%, Mandatory Tender 5/9/2019 | 3,527,000 | |
| 2,600,000 | Massachusetts HEFA (Baystate Medical Center), (Series G) Daily VRDNs, (TD Bank, N.A. LOC), 2.270%, 5/1/2019 | 2,600,000 | |
| 700,000 | Massachusetts HEFA (Harvard University), (Series Y) Weekly VRDNs, 2.310%, 5/2/2019 | 700,000 | |
| 605,000 | Massachusetts HEFA (Henry Heywood Memorial Hospital), (Series 2009C) Tranche 2 Daily VRDNs, (TD Bank, N.A. LOC), 2.240%, 5/1/2019 | 605,000 | |
| 2,500,000 | Massachusetts IFA (New England Power Co.), (Series 1992B), CP, 1.700%, Mandatory Tender 5/10/2019 | 2,500,000 | |
| 350,000 | Massachusetts IFA (New England Power Co.), (Series 1992B), CP, 1.800%, Mandatory Tender 5/3/2019 | 350,000 | |
| 1,625,000 | Massachusetts School Building Authority, Eagles (Series 2014-0003) Weekly VRDNs, (Citibank N.A., New York LIQ), 2.330%, 5/2/2019 | 1,625,000 | |
| 1,300,000 | Massachusetts School Building Authority, Tender Option Bond Trust Certificates (2015-XF2203) Weekly VRDNs, (Citibank N.A., New York LIQ), 2.320%, 5/2/2019 | 1,300,000 | |
| 450,000 | Massachusetts School Building Authority, Tender Option Bond Trust Certificates (2016-XX1008) Weekly VRDNs, (Barclays Bank PLC LIQ), 2.330%, 5/2/2019 | 450,000 | |
| 1,000,000 | Massachusetts State Development Finance Agency (Babson College), (Series 2008A) Weekly VRDNs, (Bank of America N.A. LOC), 2.280%, 5/2/2019 | 1,000,000 |
Semi-Annual Shareholder Report
2
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| Massachusetts—continued | |||
| $575,000 | Massachusetts State Development Finance Agency (Marine Biological Laboratory), (Series 2006) Weekly VRDNs, (PNC Bank, N.A. LOC), 2.370%, 5/2/2019 | $575,000 | |
| 3,000,000 | Massachusetts State Development Finance Agency (Partners Healthcare Systems), RBC Muni Products (Series 2019 E-130) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.330%, 5/2/2019 | 3,000,000 | |
| 5,775,000 | Massachusetts State Development Finance Agency (Tabor Academy), (Series 2007A) Weekly VRDNs, (Citizens Bank, N.A., Providence LOC), 2.470%, 5/1/2019 | 5,775,000 | |
| 2,270,000 | Massachusetts State Development Finance Agency (Tabor Academy), (Series 2007B) Weekly VRDNs, (Citizens Bank, N.A., Providence LOC), 2.470%, 5/1/2019 | 2,270,000 | |
| 720,000 | Massachusetts State Health & Educational Facility (Amherst College), (Series 2005 J-2) Daily VRDNs, 2.220%, 5/1/2019 | 720,000 | |
| 795,000 | Massachusetts State Health & Educational Facility (Massachusetts Institute of Technology), Tender Option Bond Trust Receipts (2016-XM0232) Weekly VRDNs, (Bank of America N.A. LIQ), 2.320%, 5/2/2019 | 795,000 | |
| 2,950,000 | Massachusetts State Housing Finance Agency Housing Revenue (Princeton Westford), (2015 Series A) Weekly VRDNs, (Bank of America N.A. LOC), 2.310%, 5/2/2019 | 2,950,000 | |
| 2,770,000 | Massachusetts Water Resources Authority, Tender Option Bond Trust Certificates (2016-XX1002) Weekly VRDNs, (Barclays Bank PLC LIQ), 2.330%, 5/2/2019 | 2,770,000 | |
| 2,500,000 | Metropolitan Boston Transit Parking Corporation, Stage Trust (Series 2011-77C) TOBs, (GTD by Wells Fargo Bank, N.A.)/(Wells Fargo Bank, N.A. LIQ), 2.570%, Optional Tender 7/25/2019 | 2,500,000 | |
| 1,805,364 | Sherborn, MA BANs, 2.280%, 9/14/2019 | 1,806,878 | |
| TOTAL INVESTMENT IN SECURITIES—99.2% (AT AMORTIZED COST)2 | 56,947,139 | ||
| OTHER ASSETS AND LIABILITIES - NET—0.8%3 | 451,090 | ||
| TOTAL NET ASSETS—100% | $57,398,229 |
At April 30, 2019, the Fund held no securities that are subject to the federal alternative minimum tax (AMT) (unaudited).
| 1 | Current rate and current maturity or next reset date shown for floating rate notes and variable rate notes/demand instruments. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
| 2 | Also represents cost for federal tax purposes. |
| 3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Note: The categories of investments are shown as a percentage of total net assets at April 30, 2019.
Semi-Annual Shareholder Report
3
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
In valuing the Fund's assets, as of April 30, 2019, all investments of the Fund are valued using amortized cost, which is a methodology utilizing Level 2 inputs.
The following acronyms are used throughout this portfolio:
| BANs | —Bond Anticipation Notes |
| CP | —Commercial Paper |
| FHLB | —Federal Home Loan Bank |
| GTD | —Guaranteed |
| HEFA | —Health and Education Facilities Authority |
| IFA | —Industrial Finance Authority |
| LIQ | —Liquidity Agreement |
| LOC | —Letter of Credit |
| TOBs | —Tender Option Bonds |
| VRDNs | —Variable Rate Demand Notes |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
4
Financial Highlights–Wealth Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Period Ended 10/31/20181 | |
| Net Asset Value, Beginning of Period | $1.00 | $1.00 |
| Income From Investment Operations: | ||
| Net investment income | 0.007 | 0.010 |
| Net realized gain | — | — |
| TOTAL FROM INVESTMENT OPERATIONS | 0.007 | 0.010 |
| Less Distributions: | ||
| Distributions from net investment income | (0.007) | (0.010) |
| Distributions from net realized gain | — | (0.000)2 |
| TOTAL DISTRIBUTIONS | (0.007) | (0.010) |
| Net Asset Value, End of Period | $1.00 | $1.00 |
| Total Return3 | 0.68% | 1.02% |
| Ratios to Average Net Assets: | ||
| Net expenses | 0.36%4 | 0.36%4 |
| Net investment income | 1.34%4 | 1.16%4 |
| Expense waiver/reimbursement5 | 0.42%4 | 0.45%4 |
| Supplemental Data: | ||
| Net assets, end of period (000 omitted) | $353 | $732 |
| 1 | Reflects operations for the period from November 6, 2017 (date of initial investment) to October 31, 2018. |
| 2 | Represents less than $0.001. |
| 3 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 4 | Computed on an annualized basis. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
5
Financial Highlights–Service Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.006 | 0.008 | 0.002 | 0.0001 | 0.0001 | 0.0001 |
| Net realized gain | — | — | 0.0001 | 0.0001 | 0.0001 | 0.0001 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.006 | 0.008 | 0.002 | 0.0001 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.006) | (0.008) | (0.002) | (0.000)1 | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | — | (0.000)1 | (0.000)1 | (0.000)1 | (0.000)1 | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.006) | (0.008) | (0.002) | (0.000)1 | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.55% | 0.78% | 0.25% | 0.07% | 0.05% | 0.03% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 0.61%3 | 0.61% | 0.61% | 0.32%4 | 0.12% | 0.13% |
| Net investment income | 1.11%3 | 0.72% | 0.20% | 0.03% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.42%3 | 0.39% | 0.37% | 0.57% | 0.74% | 0.70% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $16,423 | $19,628 | $50,886 | $71,785 | $115,844 | $151,956 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.32% after taking into account this expense reduction. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
6
Financial Highlights–Cash Series Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.003 | 0.004 | 0.0001 | 0.0001 | 0.0001 | 0.0001 |
| Net realized gain | — | — | 0.0001 | 0.0001 | 0.0001 | 0.0001 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.003 | 0.004 | 0.0001 | 0.0001 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.003) | (0.004) | (0.000)1 | (0.000)1 | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | — | (0.000)1 | (0.000)1 | (0.000)1 | (0.000)1 | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.003) | (0.004) | (0.000)1 | (0.000)1 | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.35% | 0.37% | 0.05% | 0.04% | 0.05% | 0.03% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 1.02%3 | 1.02% | 0.81% | 0.35%4 | 0.12% | 0.13% |
| Net investment income | 0.69%3 | 0.36% | 0.01% | 0.01% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.61%3 | 0.60% | 0.77% | 1.14% | 1.35% | 1.32% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $40,622 | $48,133 | $42,818 | $60,767 | $80,123 | $62,657 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.35% after taking into account this expense reduction. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
7
Statement of Assets and Liabilities
April 30, 2019 (unaudited)
| Assets: | ||
| Investment in securities, at amortized cost and fair value | $56,947,139 | |
| Cash | 334,244 | |
| Income receivable | 268,590 | |
| Receivable for shares sold | 14,948 | |
| TOTAL ASSETS | 57,564,921 | |
| Liabilities: | ||
| Payable for shares redeemed | $83,808 | |
| Income distribution payable | 3,245 | |
| Payable for investment adviser fee (Note 4) | 232 | |
| Payable for administrative fees (Note 4) | 125 | |
| Payable for portfolio accounting fees | 23,387 | |
| Payable for distribution services fee (Note 4) | 13,813 | |
| Payable for other service fees (Notes 2 and 4) | 11,885 | |
| Payable for share registration costs | 25,202 | |
| Accrued expenses (Note 4) | 4,995 | |
| TOTAL LIABILITIES | 166,692 | |
| Net assets for 57,397,831 shares outstanding | $57,398,229 | |
| Net Assets Consist of: | ||
| Paid-in capital | $57,398,043 | |
| Total distributable earnings | 186 | |
| TOTAL NET ASSETS | $57,398,229 | |
| Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
| Wealth Shares: | ||
| $353,437 ÷ 353,434 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Service Shares: | ||
| $16,422,641 ÷ 16,422,527 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Cash Series Shares: | ||
| $40,622,151 ÷ 40,621,870 shares outstanding, no par value, unlimited shares authorized | $1.00 |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
8
Statement of Operations
Six Months Ended April 30, 2019 (unaudited)
| Investment Income: | |||
| Interest | $565,695 | ||
| Expenses: | |||
| Investment adviser fee (Note 4) | $98,963 | ||
| Administrative fee (Note 4) | 26,390 | ||
| Custodian fees | 1,487 | ||
| Transfer agent fee | 28,279 | ||
| Directors'/Trustees' fees (Note 4) | 416 | ||
| Auditing fees | 10,116 | ||
| Legal fees | 6,239 | ||
| Portfolio accounting fees | 40,918 | ||
| Distribution services fee (Note 4) | 143,340 | ||
| Other service fees (Notes 2 and 4) | 81,530 | ||
| Share registration costs | 33,234 | ||
| Printing and postage | 10,552 | ||
| Miscellaneous (Note 4) | 3,256 | ||
| TOTAL EXPENSES | 484,720 | ||
| Waivers and Reimbursement: | |||
| Waiver of investment adviser fee (Note 4) | $(98,963) | ||
| Waiver/reimbursement of other operating expenses (Notes 2 and 4) | (85,905) | ||
| TOTAL WAIVERS AND REIMBURSEMENT | (184,868) | ||
| Net expenses | 299,852 | ||
| Net investment income | 265,843 | ||
| Change in net assets resulting from operations | $265,843 |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
9
Statement of Changes in Net Assets
| Six Months Ended (unaudited) 4/30/2019 | Year Ended 10/31/2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations: | ||
| Net investment income | $265,843 | $432,100 |
| CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 265,843 | 432,100 |
| Distributions to Shareholders: | ||
| Wealth Shares | (3,629) | (2,524) |
| Service Shares | (97,899) | (269,984) |
| Cash Series Shares | (164,360) | (163,423) |
| CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (265,888) | (435,931) |
| Share Transactions: | ||
| Proceeds from sale of shares | 100,264,982 | 234,406,209 |
| Net asset value of shares issued to shareholders in payment of distributions declared | 243,738 | 290,120 |
| Cost of shares redeemed | (111,604,057) | (259,902,401) |
| CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (11,095,337) | (25,206,072) |
| Change in net assets | (11,095,382) | (25,209,903) |
| Net Assets: | ||
| Beginning of period | 68,493,611 | 93,703,514 |
| End of period | $57,398,229 | $68,493,611 |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
10
Notes to Financial Statements
April 30, 2019 (unaudited)
1. ORGANIZATION
Money Market Obligations Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of 20 portfolios. The financial statements included herein are only those of Federated Massachusetts Municipal Cash Trust (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers three classes of shares: Wealth Shares, Service Shares and Cash Series Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to provide current income exempt from federal regular income tax and Massachusetts state income tax consistent with stability of principal. Interest income from the Fund's investments may be subject to the federal AMT for individuals.
The Fund operates as a retail money market fund. As a retail money market fund, the Fund: (1) will generally continue to use amortized cost to value its portfolio securities and transact at a stable $1.00 net asset value (NAV); (2) has adopted policies and procedures reasonably designed to limit investments in the Fund to accounts beneficially owned by natural persons as required for a retail money market fund by Rule 2a-7 under the Act; and (3) has adopted policies and procedures to impose liquidity fees on redemptions and/or temporary redemption gates in the event that the Fund's weekly liquid assets were to fall below a designated threshold, if the Fund's Board of Trustees (the “Trustees”) determine such liquidity fees or redemption gates are in the best interests of the Fund.
The Fund commenced offering Wealth Shares on November 6, 2017.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
Securities are valued at amortized cost. Under the amortized cost valuation method, an investment is valued initially at its cost as determined in accordance with GAAP. The Fund then adjusts the amount of interest income accrued each day over the term of the investment to account for any difference between the initial cost of the investment and the amount payable at its maturity. If amortized cost is determined not to approximate fair value, the value of the portfolio securities will be determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share.
The Trustees have ultimate responsibility for determining the fair value of investments. The Trustees have appointed a valuation committee (“Valuation Committee”) comprised of officers of the Fund, Federated Investment Management Company (the “Adviser”) and certain of the Adviser's affiliated companies to assist in determining fair value of securities and in overseeing the comparison of amortized cost to market-based value. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value
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evaluations of the current value of certain investments for purposes of monitoring the relationship of market-based value and amortized cost. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs and assumptions), and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared daily and paid monthly. Amortization/accretion of premium and discount is included in investment income. Investment income, realized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. The detail of the total fund expense waivers and reimbursement of $184,868 is disclosed in various locations in this Note 2 and Note 4.
Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Other Service Fees
The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund's Wealth Shares, Service Shares and Cash Series Shares to unaffiliated financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees. In addition, unaffiliated third-party financial intermediaries may waive other service fees. This waiver can be modified or terminated at any time. For the six months ended April 30, 2019, other service fees for the Fund were as follows:
| Other Service Fees Incurred | |
| Service Shares | $21,805 |
| Cash Series Shares | 59,725 |
| TOTAL | $81,530 |
For the six months ended April 30, 2019, the Fund's Wealth Shares did not incur other service fees.
Federal Taxes
It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the six months ended April 30, 2019, the Fund did not have a liability for any uncertain tax positions. The Fund
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recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of April 30, 2019, tax years 2015 through 2018 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.
When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Restricted Securities
The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at amortized cost in accordance with Rule 2a-7 under the Act.
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. The Fund applies investment company accounting and reporting guidance.
3. SHARES OF BENEFICIAL INTEREST
The following tables summarize share activity:
| Six Months Ended 4/30/2019 | Year Ended 10/31/20181 | |||||||||
| Wealth Shares: | Shares | Amount | Shares | Amount | ||||||
| Shares sold | 471,742 | $ | 471,742 | 1,311,180 | $ | 1,311,180 | ||||
| Shares redeemed | (850,574) | (850,574) | (578,914) | (578,914) | ||||||
| NET CHANGE RESULTING FROM WEALTH SHARE TRANSACTIONS | (378,832) | $ | (378,832) | 732,266 | $ | 732,266 | ||||
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| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||||||||
| Service Shares: | Shares | Amount | Shares | Amount | ||||||
| Shares sold | 13,047,618 | $ | 13,047,618 | 67,415,795 | $ | 67,415,795 | ||||
| Shares issued to shareholders in payment of distributions declared | 79,949 | 79,949 | 127,681 | 127,681 | ||||||
| Shares redeemed | (16,333,169) | (16,333,169) | (98,799,007) | (98,799,007) | ||||||
| NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS | (3,205,602) | $ | (3,205,602) | (31,255,531) | $ | (31,255,531) | ||||
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||||||||
| Cash Series Shares: | Shares | Amount | Shares | Amount | ||||||
| Shares sold | 86,745,622 | $ | 86,745,622 | 165,679,234 | $ | 165,679,234 | ||||
| Shares issued to shareholders in payment of distributions declared | 163,789 | 163,789 | 162,439 | 162,439 | ||||||
| Shares redeemed | (94,420,314) | (94,420,314) | (160,524,480) | (160,524,480) | ||||||
| NET CHANGE RESULTING FROM CASH SERIES SHARE TRANSACTIONS | (7,510,903) | $ | (7,510,903) | 5,317,193 | $ | 5,317,193 | ||||
| NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (11,095,337) | $ | (11,095,337) | (25,206,072) | $ | (25,206,072) | ||||
| 1 | Reflects operations for the period from November 6, 2017 (date of initial investment) to October 31, 2018. |
4. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.30% of the Fund's average daily net assets. Prior to February 28, 2018, the annual advisory fee was 0.40% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund. For the six months ended April 30, 2019, the Adviser voluntarily waived $98,963 of its fee and voluntarily reimbursed $40,514 of other operating expenses.
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Administrative Fee
Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below:
| Administrative Fee | Average Daily Net Assets of the Investment Complex |
| 0.100% | on assets up to $50 billion |
| 0.075% | on assets over $50 billion |
Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, the annualized fee paid to FAS was 0.080% of average daily net assets of the Fund.
In addition, FAS may charge certain out-of-pocket expenses to the Fund.
Distribution Services Fee
The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Cash Series Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses at 0.60% of average daily net assets, annually, to compensate FSC. Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, distribution services fees for the Fund were as follows:
| Distribution Services Fees Incurred | Distribution Services Fees Waived | |
| Cash Series Shares | $143,340 | $(45,391) |
When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended April 30, 2019, FSC retained $60,173 fees paid by the Fund.
Other Service Fees
For the six months ended April 30, 2019, FSSC received $100 of the other service fees disclosed in Note 2.
Expense Limitation
Due to the possibility of changes in market conditions and other factors, there can be no assurance that the level of waivers/reimbursement/reduction of Fund expenses reflected in the financial highlights will be maintained in the future. However, the Adviser and certain of its affiliates (which may include FSC, FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, extraordinary expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund's Wealth Shares, Service Shares and Cash Series Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.36%, 0.61% and 1.02% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) March 1, 2020; or (b) the date
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of the Fund's next effective Prospectus. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.
Interfund Transactions
During the six months ended April 30, 2019, the Fund engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and amounted to $31,510,000 and $31,710,000, respectively.
Directors'/Trustees' and Miscellaneous Fees
Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Directors'/Trustees' fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
5. CONCENTRATION OF RISK
Since the Fund invests a substantial portion of its assets in issuers located in one state, it will be more susceptible to factors adversely affecting issuers of that state than would be a comparable tax-exempt mutual fund that invests nationally. In order to reduce the credit risk associated with such factors, at April 30, 2019, 48.3% of the securities in the portfolio of investments were backed by letters of credit or bond insurance of various financial institutions and financial guaranty assurance agencies. The largest percentage of investments insured by or supported (backed) by a letter of credit from any one institution or agency, was 14.1% of total investments.
6. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of April 30, 2019, there were no outstanding loans. During the six months ended April 30, 2019, the program was not utilized.
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Shareholder Expense Example (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2018 to April 30, 2019.
ACTUAL EXPENSES
The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, toestimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and anassumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you shouldnot use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
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Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relativetotal costs of owning different funds.
| Beginning Account Value 11/1/2018 | Ending Account Value 4/30/2019 | Expenses Paid During Period1 | |
| Actual: | |||
| Wealth Shares | $1,000 | $1,006.80 | $1.79 |
| Service Shares | $1,000 | $1,005.50 | $3.03 |
| Cash Series Shares | $1,000 | $1,003.50 | $5.07 |
| Hypothetical (assuming a 5% return before expenses): | |||
| Wealth Shares | $1,000 | $1,023.00 | $1.81 |
| Service Shares | $1,000 | $1,021.80 | $3.06 |
| Cash Series Shares | $1,000 | $1,019.70 | $5.11 |
| 1 | Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
| Wealth Shares | 0.36% |
| Service Shares | 0.61% |
| Cash Series Shares | 1.02% |
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Evaluation and Approval of Advisory Contract–May 2018
Federated massachusetts municipal cash trust (the “Fund”)
At its meetings in May 2018, the Fund's Board of Trustees (the “Board”), including a majority of those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the Fund's investment advisory contract for an additional one-year term. The Board's decision regarding the contract reflects the exercise of its business judgment after considering all of the information received on whether to continue the existing arrangements.
The Board had previously appointed a Senior Officer, whose duties included specified responsibilities relating to the process by which advisory fees are to be charged to a fund advised by Federated Investment Management Company (the “Adviser”) or its affiliates (collectively, “Federated”) (each, a “Federated fund”). The Senior Officer's responsibilities included preparing and furnishing to the Board an annual independent written evaluation that covered topics discussed below. In December 2017, the Senior Officer position was eliminated. Notwithstanding the elimination of the Senior Officer position, at the request of the Independent Trustees, the Fund's Chief Compliance Officer (the CCO) furnished to the Board in advance of its May 2018 meetings an independent written evaluation covering substantially the same topics that had been covered in the Senior Officer's written evaluation in prior years. The Board considered the CCO's independent written evaluation (the “CCO Fee Evaluation Report”), along with other information, in evaluating the reasonableness of the Fund's management fee and in deciding to approve the continuation of the investment advisory contract. Consistent with the former Senior Officer position, the CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees.
The Board also considered judicial decisions concerning allegedly excessive investment advisory fees in making its decision. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser's fiduciary duty with respect to its receipt of compensation from a fund: (1) the nature and quality of the services provided by an adviser to a fund and its shareholders (including the performance of the fund, its benchmark and comparable funds); (2) an adviser's cost of providing the services (including the profitability to an adviser of providing advisory services to a fund); (3) the extent to which an adviser may realize “economies of scale” as a fund grows larger and, if such economies of scale exist, whether they have been shared with a fund and its shareholders or the family of funds; (4) any “fall-out” financial benefits that accrue to an adviser because of its relationship with a fund (including
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research services received from brokers that execute fund trades and any fees paid to affiliates of an adviser for services rendered to a fund); (5) comparative fee and expense structures (including a comparison of fees paid to an adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the Adviser or its affiliates for what might be viewed as like services); and (6) the extent of care, conscientiousness and independence with which the fund's board members perform their duties and their expertise (including whether they are fully informed about all facts the board deems relevant to its consideration of an adviser's services and fees). The Board noted that the Securities and Exchange Commission (SEC) disclosure requirements regarding the basis for the Board's approval of the Fund's investment advisory contract generally align with the factors listed above. The Board was aware of these factors and was guided by them in its review of the Fund's investment advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.
The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds. The Independent Trustees were assisted in their deliberations by independent legal counsel.
In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board received detailed information about the Fund and the Federated organization throughout the year, and in connection with its May meetings at which the Board's formal approval of the advisory and subadvisory contracts occurred. In this regard, Federated provided much of this information at each regular meeting of the Board, and furnished additional information specifically in connection with the May meetings. In the months preceding the May meetings, the Board requested and reviewed written materials prepared by Federated in response to requests on behalf of the Independent Trustees encompassing a wide variety of topics. At the May meetings, in addition to meeting in separate sessions of the Independent Trustees without management present, senior management of the Adviser also met with the Independent Trustees and their counsel to discuss the materials presented and such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the advisory and subadvisory contracts. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose.
The Board's consideration of the investment advisory contract included review of the CCO Fee Evaluation Report, accompanying data and additional information covering the following matters among others: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in terms relative to its particular investment program and certain competitor or “peer group” funds and/or other benchmarks, as appropriate) and comments on the
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reasons for performance; the Fund's investment objectives; the Fund's expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to similar and/or competing funds), with due regard for contractual or voluntary expense limitations; the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial and other risks assumed by the Adviser in sponsoring the Fund; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are generally available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.
While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged by other advisers for managing funds with comparable investment programs, the Board has found the use of such comparisons to be relevant to its deliberations. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund's total expense ratio (i.e., gross and net advisory fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated using data supplied by independent fund ranking organizations (the “Peer Group”). The Board received a description of the composition and methodology used to select the Peer Group. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because it is believed that they are more relevant. For example, other mutual funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles. Also, they are the type of investment vehicle, in fact, chosen and maintained by the Fund's investors. The range of their fees and expenses, therefore, appears to be a relevant indicator of what consumers have found to be reasonable in the marketplace in which the Fund competes.
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The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund's fee rates relative to its Peer Group. In this regard, the Board noted that the contractual advisory fee rate was above the median of the relevant Peer Group, but the Board noted the applicable waivers and reimbursements, and that the overall expense structure of the Fund remained competitive in the context of other factors considered by the Board.
For comparison, the CCO reviewed the fees charged by Federated for providing advisory services to products other than the Federated funds (e.g., institutional and separate accounts and third-party unaffiliated mutual funds for which Federated serves as sub-adviser) (referenced to as “Comparable Funds/Accounts”). With respect to Comparable Funds/Accounts other than third-party mutual funds, the CCO concluded that they are inherently different products. Those differences include, but are not limited to, different types of targeted investors; different applicable laws and regulations; different legal structures; different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; and the time spent by portfolio managers and their teams, as well as personnel in the Funds Financial Services, Legal, Compliance and Risk Management departments, in reviewing securities pricing, addressing different administrative responsibilities, addressing different degrees of risk associated with management and a variety of different costs. The CCO also reviewed the differences in the nature of the services required for Federated to manage its proprietary mutual fund business versus managing a discrete pool of assets as a sub-adviser to another institution's mutual fund, and that Federated generally performs significant additional services and assumes substantially greater risk in managing the Fund and other Federated funds than in its role as sub-adviser to an unaffiliated third-party mutual fund. The CCO did not consider the fees for providing advisory services to Comparable Funds/Accounts to be determinative in judging the appropriateness of the Federated funds' advisory fees.
Following such evaluation, and full deliberations, the Board concluded that the fees and expenses of the Fund are reasonable and supported renewal of the Fund's investment advisory contract.
The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of the Adviser and its affiliates dedicated to the Fund. In this regard, the Board evaluated, among other things, the Adviser's personnel, experience, track record, overall reputation and willingness to invest in personnel and infrastructure that benefit the Fund. In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and the Adviser's ability and experience in attracting and retaining qualified personnel to service the Fund. The Board noted the compliance program of the Adviser and the compliance-related resources provided to the Fund by the Adviser, including the Adviser's commitment to
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respond to rulemaking initiatives of the SEC. The Fund's ability to deliver competitive performance when compared to its Peer Group was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund's investment program. The Adviser's ability to execute this program was one of the Board's considerations in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services warrant the continuation of the investment advisory contract.
In evaluating the Fund's investment performance, the Board considered performance results in light of the Fund's investment objective, strategies and risks, as disclosed in the Fund's prospectus. The Board considered detailed investment reports on the Fund's performance that were provided to the Board throughout the year and in connection with the May meetings. The CCO also reviewed information regarding the performance of other mutual funds in the Peer Group, noting the CCO's view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases individual funds may exhibit significant and unique differences in their objectives and management techniques when compared to other funds within a Peer Group.
The Fund's performance fell below the median of the relevant Peer Group for the one-year period covered by the CCO Fee Evaluation Report. The Board discussed the Fund's performance with the Adviser and recognized the efforts being taken by the Adviser. The Board also considered the relatively tight dispersion of performance data with respect to the Fund and its Peer Group.
Following such evaluation, and full deliberations, the Board concluded that the performance of the Fund supported renewal of the Fund's investment advisory contract.
The Board also received financial information about Federated, including information regarding the compensation and ancillary (or “fall-out”) benefits Federated derived from its relationships with the Federated funds. This information covered not only the fees under the investment advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator and distributor). In this regard, the Board considered that certain Federated subsidiaries provide distribution and shareholder services to the Federated funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The information also detailed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a Federated fund to be competitive in the marketplace, the Adviser and its affiliates frequently waived
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fees and/or reimbursed expenses and have disclosed to Federated fund investors and/or indicated to the Board their intention to do so in the future. Moreover, the Board receives regular reporting as to the institution, adjustment or elimination of these voluntary waivers.
In 2018, the Board approved a reduction of 10 basis points in the contractual advisory fee.
Federated furnished information, requested by the CCO, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the CCO. The CCO noted that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs continues to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable, since a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated fund and may produce unintended consequences. The allocation information, including the CCO's view that fund-by-fund estimations may be unreliable, was considered in the evaluation by the Board.
The Board and the CCO also reviewed information compiled by Federated comparing its profitability information to other publicly held fund management companies, including information regarding profitability trends over time. In this regard, the CCO concluded that Federated's profit margins did not appear to be excessive. The CCO also noted that Federated appeared financially sound, with the resources necessary to fulfill its obligations under its contracts with the Fund.
The CCO Fee Evaluation Report also discussed the notion of possible realization of “economies of scale” as a fund grows larger. In this regard, the Board considered that the Adviser has made significant and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, shareholder services, compliance, internal audit and risk management functions, as well as systems technology (including technology relating to cybersecurity) and that the benefits of these efforts (as well as any economies of scale, should they exist) were likely to be shared with the Federated fund family as a whole. The Board noted that the Adviser's investments in these areas are extensive. In addition, the Board considered that the Adviser and its affiliates have frequently waived fees and/or reimbursed expenses and that this has allowed fund shareholders to share potential economies of scale with shareholders. The Board also considered that such waivers and reimbursements can provide protection from an increase in expenses if a Federated fund's assets decline. Federated, as it does throughout the year, and specifically in connection with the Board's review of the advisory and subadvisory contracts, furnished information relative to revenue sharing or adviser-paid fees. Federated and the CCO noted that this information should be viewed to determine if there was an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, and should not be viewed to determine the
Semi-Annual Shareholder Report
24
appropriateness of advisory fees because it would represent marketing and distribution expenses. The Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which (as discussed in the CCO Fee Evaluation Report) is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with “breakpoints” that serve to reduce the fee as a fund attains a certain size.
The CCO stated that his observations and the information accompanying the CCO Fee Evaluation Report supported a finding by the Board that the management fee for the Fund was reasonable. Under these circumstances, no objection was raised to the continuation of, the Fund's investment advisory contract. The CCO also recognized that the Board's evaluation of the Federated funds' advisory and subadvisory arrangements is a continuing and on-going process that is informed by the information that the Board requests and receives from management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its on-going oversight of the Federated funds.
In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an investment advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the investment advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund. The Board concluded that, in light of the factors summarized above, including the nature, quality and scope of the services provided to the Fund by the Adviser and its affiliates, continuation of the investment advisory contract was appropriate.
The Board based its decision to approve the investment advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the continuation of the contract reflects its view that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing arrangement.
Semi-Annual Shareholder Report
25
Voting Proxies on Fund Portfolio Securities
A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with the Fund and share class name at www.FederatedInvestors.com/FundInformation. Form N-PX filings are also available at the SEC's website at www.sec.gov.
Portfolio Schedule
The Fund files with the SEC a complete schedule of its portfolio holdings as of the close of each month on “Form N-MFP.” Form N-MFP is available on the SEC's website at www.sec.gov. You may access Form N-MFP via the link to the Fund and share class name at www.FederatedInvestors.com.
Semi-Annual Shareholder Report
26
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
This Report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called “householding”), as permitted by applicable rules. The Fund's “householding” program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the “householding” program. The Fund is also permitted to treat a shareholder as having given consent (“implied consent”) if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to “household” at least sixty (60) days before it begins “householding” and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to “opt out” of “householding.” Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of “householding” at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.
Semi-Annual Shareholder Report
27
Federated Massachusetts Municipal Cash Trust
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedInvestors.com
or call 1-800-341-7400.
or call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 608919387
CUSIP 60934N518
CUSIP 608919882
CUSIP 60934N518
CUSIP 608919882
1052806 (6/19)
Federated is a registered trademark of Federated Investors, Inc.
2019 ©Federated Investors, Inc.
2019 ©Federated Investors, Inc.
Semi-Annual Shareholder Report
April 30, 2019
| Share Class | Ticker | Wealth | NISXX | Service | FNTXX | Cash II | NYCXX |
| Cash Series | FNCXX |
Federated New York Municipal Cash Trust
A Portfolio of Money Market Obligations Trust
IMPORTANT NOTICE REGARDING REPORT DELIVERY
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4. Your election to receive reports in paper will apply to all funds held with the Fund complex or your financial intermediary.
The Fund is a Retail Money Market Fund and is only available for investment to accounts beneficially owned by natural persons.
Not FDIC Insured ■ May Lose Value ■ No Bank Guarantee
Portfolio of Investments Summary Tables (unaudited)
At April 30, 2019, the Fund's portfolio composition1 was as follows:
| Security Type | Percentage of Total Net Assets |
| Variable Rate Demand Instruments | 63.4% |
| Municipal Notes | 22.1% |
| Commercial Paper | 8.2% |
| Other Assets and Liabilities—Net2 | 6.3% |
| TOTAL | 100.0% |
At April 30, 2019, the Fund's effective maturity schedule3 was as follows:
| Securities With an Effective Maturity of: | Percentage of Total Net Assets |
| 1-7 Days | 60.6% |
| 8-30 Days | 6.9% |
| 31-90 Days | 14.6% |
| 91-180 Days | 2.6% |
| 181 Days or more | 9.0% |
| Other Assets and Liabilities—Net2 | 6.3% |
| TOTAL | 100.0% |
| 1 | See the Fund's Prospectus and Statement of Additional Information for a description of these investments. |
| 2 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
| 3 | Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940, which regulates money market mutual funds. |
Semi-Annual Shareholder Report
1
Portfolio of Investments
April 30, 2019 (unaudited)
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—93.7% | ||
| New York—93.7% | |||
| $385,000 | Albany, NY IDA (Albany Local Development Corp.), (Series 2002: Corning Preserve/Hudson Riverfront) Weekly VRDNs, (KeyBank, N.A. LOC), 2.500%, 5/2/2019 | $385,000 | |
| 4,400,000 | Albany, NY IDA (Renaissance Corporation of Albany), (Series 2004) Weekly VRDNs, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 2.350%, 5/2/2019 | 4,400,000 | |
| 3,000,000 | Argyle, NY CSD BANs, 3.000%, 6/6/2019 | 3,002,900 | |
| 4,840,000 | Aurora, NY BANs, 2.375%, 4/2/2020 | 4,865,586 | |
| 5,229,500 | Batavia Town, NY BANs, 3.000%, 3/12/2020 | 5,273,764 | |
| 3,328,183 | Bath, NY CSD BANs, 2.750%, 6/21/2019 | 3,331,923 | |
| 2,184,760 | Belfast, NY CSD BANs, 2.750%, 8/1/2019 | 2,188,918 | |
| 2,500,000 | Binghamton, NY City School District RANs, 2.750%, 1/24/2020 | 2,512,574 | |
| 2,909,000 | Cold Spring, NY BANs, 2.750%, 5/10/2019 | 2,909,456 | |
| 2,130,000 | Columbia County, NY IDA (Columbia Memorial Hospital), (Series 2008A) Weekly VRDNs, (HSBC Bank USA, N.A. LOC), 2.390%, 5/2/2019 | 2,130,000 | |
| 3,100,000 | Cortland, NY BANs, 2.375%, 4/10/2020 | 3,117,071 | |
| 5,054,184 | Depew, NY Union Free School District BANs, 2.000%, 8/30/2019 | 5,058,115 | |
| 8,658,000 | Elba, NY, (Series 2018A) BANs, 2.750%, 11/26/2019 | 8,660,932 | |
| 7,000,000 | Gates Chili, NY CSD BANs, 2.250%, 6/27/2019 | 7,005,174 | |
| 2,000,000 | Harrisville, NY CSD BANs, 2.750%, 6/28/2019 | 2,002,336 | |
| 2,975,000 | Hastings, NY BANs, 2.750%, 7/3/2019 | 2,978,517 | |
| 2,265,000 | Herkimer County, NY CSD, (Series 2018A) BANs, 2.750%, 8/1/2019 | 2,269,647 | |
| 5,030,000 | Hudson Yards Infrastructure Corp. NY, Tender Option Bond Trust Receipts (Series 2019-ZM0737) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.380%, 5/2/2019 | 5,030,000 | |
| 2,075,086 | Lloyd, NY BANs, 3.000%, 2/14/2020 | 2,087,934 | |
| 9,875,000 | MTA Transportation Revenue, Tender Option Bond Trust Receipts (Series 2018-XM0697) Weekly VRDNs, (Bank of America N.A. LIQ), 2.450%, 5/2/2019 | 9,875,000 | |
| 3,925,000 | Madison County, NY BANs, 2.125%, 4/10/2020 | 3,932,342 | |
| 2,980,000 | Manchester-Shortsville, NY CSD BANs, 2.500%, 7/30/2019 | 2,984,030 | |
| 900,000 | Metropolitan Transportation Authority, NY (MTA Transportation Revenue), (Series 2012G-2) Weekly VRDNs, (TD Bank, N.A. LOC), 2.400%, 5/2/2019 | 900,000 | |
| 18,445,000 | Metropolitan Transportation Authority, NY (MTA Transportation Revenue), Clipper Tax-Exempt Certificates Trust (Series 2009-71) Weekly VRDNs, (State Street Bank and Trust Co. LIQ)/(State Street Bank and Trust Co. LOC), 2.340%, 5/2/2019 | 18,445,000 |
Semi-Annual Shareholder Report
2
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| New York—continued | |||
| $8,500,000 | Metropolitan Transportation Authority, NY (MTA Transportation Revenue), Tender Option Bond Trust Certificates (2018-ZM0606) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.380%, 5/2/2019 | $8,500,000 | |
| 3,470,000 | Metropolitan Transportation Authority, NY (MTA Transportation Revenue), Tender Option Bond Trust Receipts (2016-XF0499) Weekly VRDNs, (Toronto Dominion Bank LIQ), 2.420%, 5/2/2019 | 3,470,000 | |
| 3,160,000 | Metropolitan Transportation Authority, NY (MTA Transportation Revenue), Tender Option Bond Trust Receipts (2016-ZF0500) Weekly VRDNs, (Toronto Dominion Bank LIQ), 2.420%, 5/2/2019 | 3,160,000 | |
| 6,205,000 | Metropolitan Transportation Authority, NY (MTA Transportation Revenue), Tender Option Bond Trust Receipts (Series 2018-XF0623) Weekly VRDNs, (Toronto Dominion Bank LIQ), 2.420%, 5/2/2019 | 6,205,000 | |
| 2,805,000 | Monroe County, NY IDA (Continuing Developmental Services, Inc.), (Series 2007) Weekly VRDNs, (Citizens Bank, N.A., Providence LOC), 2.470%, 5/2/2019 | 2,805,000 | |
| 3,100,000 | Morrisville-Eaton, NY CSD, (Series B) BANs, 3.000%, 6/28/2019 | 3,104,370 | |
| 3,725,000 | Nassau County, NY, RBC Muni Products (Series 2018 G-5) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.330%, 5/2/2019 | 3,725,000 | |
| 1,150,000 | New York City Capital Resource Corp. (Cobble Hill Health Center, Inc.), Loan Enhanced Assistance Program (Series 2008B-1) Weekly VRDNs, (Bank of America N.A. LOC), 2.370%, 5/2/2019 | 1,150,000 | |
| 5,100,000 | New York City Housing Development Corp. (2 Gold LLC), (Series 2006A: 2 Gold Street) Weekly VRDNs, (FNMA LOC), 2.130%, 5/1/2019 | 5,100,000 | |
| 3,000,000 | New York City Housing Development Corp., Tender Option Bond Trust Certificates (Series 2019-ZF2786) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.330%, 5/2/2019 | 3,000,000 | |
| 4,000,000 | New York City Housing Development Corp., Tender Option Bond Trust Certificates (Series 2019-ZF2787) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.330%, 5/2/2019 | 4,000,000 | |
| 3,805,000 | New York City Housing Development Corp., Tender Option Bond Trust Receipts (Series 2019-XF0737) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.330%, 5/2/2019 | 3,805,000 | |
| 1,575,000 | New York City, NY Daily VRDNs, (Landesbank Hessen-Thuringen LIQ), 2.310%, 5/1/2019 | 1,575,000 | |
| 6,375,000 | New York City, NY IDA (Convent of the Sacred Heart School of New York), (Series 2002) Monthly VRDNs, (FHLB of San Francisco LOC), 1.530%, 5/2/2019 | 6,375,000 | |
| 665,000 | New York City, NY IDA (Village Community School), (Series 2001) Weekly VRDNs, (TD Bank, N.A. LOC), 2.400%, 5/2/2019 | 665,000 | |
| 1,300,000 | New York City, NY Municipal Water Finance Authority, (Series 2001F-1) Daily VRDNs, (Mizuho Bank Ltd. LIQ), 2.350%, 5/1/2019 | 1,300,000 |
Semi-Annual Shareholder Report
3
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| New York—continued | |||
| $990,000 | New York City, NY Municipal Water Finance Authority, (Series 2010CC) Weekly VRDNs, (Barclays Bank PLC LIQ), 2.300%, 5/2/2019 | $990,000 | |
| 4,500,000 | New York City, NY Municipal Water Finance Authority, (Series A-1) Daily VRDNs, (Mizuho Bank Ltd. LOC), 2.300%, 5/1/2019 | 4,500,000 | |
| 2,600,000 | New York City, NY Municipal Water Finance Authority, Second General Resolution (Fiscal 2009 Series BB-2) Daily VRDNs, (Landesbank Hessen-Thuringen LIQ), 2.310%, 5/1/2019 | 2,600,000 | |
| 5,110,000 | New York City, NY Municipal Water Finance Authority, Solar Eclipse (Series 2019-0001) TOBs, (U.S. Bank, N.A. LIQ), 1.670%, Optional Tender 7/18/2019 | 5,110,000 | |
| 9,000,000 | New York City, NY Municipal Water Finance Authority, Tender Option Bond Trust Certificates (Series 2017-ZM0547) Weekly VRDNs, (Wells Fargo Bank, N.A. LIQ), 2.330%, 5/2/2019 | 9,000,000 | |
| 765,000 | New York City, NY Transitional Finance Authority, Fiscal 2014 (Subseries D-3) Daily VRDNs, (Mizuho Bank Ltd. LIQ), 2.350%, 5/1/2019 | 765,000 | |
| 11,000,000 | New York City, NY Transitional Finance Authority, Fiscal 2018 (Subseries C-6) Weekly VRDNs, (Sumitomo Mitsui Banking Corp. LIQ), 2.380%, 5/2/2019 | 11,000,000 | |
| 3,500,000 | New York City, NY Transitional Finance Authority, Future Tax Secured Subordinate Bonds (Series 2013C-5) Weekly VRDNs, (Sumitomo Mitsui Banking Corp. LIQ), 2.400%, 5/2/2019 | 3,500,000 | |
| 1,195,000 | New York City, NY Transitional Finance Authority, New York City Recovery Bonds (2003 Series 3-G) Weekly VRDNs, (Bank of New York Mellon LIQ), 2.390%, 5/1/2019 | 1,195,000 | |
| 745,000 | New York City, NY Transitional Finance Authority, New York City Recovery Bonds (Subseries 2003A-1) Weekly VRDNs, (GTD by Landesbank Hessen-Thuringen LIQ), 2.150%, 5/1/2019 | 745,000 | |
| 6,000,000 | New York City, NY Transitional Finance Authority, Tender Option Bond Trust Receipts (Series 2018-XF0643) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.330%, 5/2/2019 | 6,000,000 | |
| 325,000 | New York City, NY, (Fiscal 2006 Series F-3) Weekly VRDNs, (Sumitomo Mitsui Banking Corp. LOC), 2.380%, 5/2/2019 | 325,000 | |
| 2,600,000 | New York City, NY, (Fiscal 2010 Series G Subseries G-4) Weekly VRDNs, (Barclays Bank PLC LIQ), 2.300%, 5/2/2019 | 2,600,000 | |
| 360,000 | New York City, NY, (Fiscal 2012 Series G-7) Daily VRDNs, (MUFG Bank Ltd. LOC), 2.300%, 5/1/2019 | 360,000 | |
| 8,730,000 | New York City, NY, 2015 Series F (Subseries F-5) Daily VRDNs, (Barclays Bank PLC LIQ), 2.300%, 5/1/2019 | 8,730,000 | |
| 5,000,000 | New York City, NY, RBC Municipal Products (Series E-86) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.330%, 5/2/2019 | 5,000,000 | |
| 4,885,000 | New York City, NY, Solar Eclipse (Series 2017-0057) TOBs, (U.S. Bank, N.A. LIQ), 2.430%, Optional Tender 7/18/2019 | 4,885,000 |
Semi-Annual Shareholder Report
4
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| New York—continued | |||
| $700,000 | New York State Dormitory Authority (City University of New York), Consolidated Fifth General Resolution Revenue Bonds (Series 2008D) Weekly VRDNs, (TD Bank, N.A. LOC), 2.400%, 5/2/2019 | $700,000 | |
| 4,335,000 | New York State Dormitory Authority (New York University), Solar Eclipse (Series 2017-0034) TOBs, (U.S. Bank, N.A. LIQ), 2.430%, Optional Tender 5/23/2019 | 4,335,000 | |
| 4,000,000 | New York State Dormitory Authority (Rockefeller University), (Series 2002A-2) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.400%, 5/2/2019 | 4,000,000 | |
| 5,645,000 | New York State Dormitory Authority (Rockefeller University), (Series 2008A) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.250%, 5/2/2019 | 5,645,000 | |
| 3,000,000 | New York State Dormitory Authority (University of Rochester, NY), (Series 2006A-1) Weekly VRDNs, (Barclays Bank PLC LOC), 2.270%, 5/1/2019 | 3,000,000 | |
| 5,600,000 | New York State Dormitory Authority State Personal Income Tax Revenue, Tender Option Bond Trust Receipts (Series 2018-XG0218) Weekly VRDNs, (Bank of America N.A. LIQ), 2.330%, 5/2/2019 | 5,600,000 | |
| 700,000 | New York State HFA (100 Maiden Lane), (2004 Series A) Weekly VRDNs, (FNMA LOC), 2.350%, 5/1/2019 | 700,000 | |
| 1,000,000 | New York State HFA (160 Madison Avenue), (2013 Series A) Daily VRDNs, (Landesbank Hessen-Thuringen LOC), 2.310%, 5/1/2019 | 1,000,000 | |
| 500,000 | New York State HFA (326 Riverdale Owners LLC), (Series 2008A: 330 Riverdale Avenue Apartments) Weekly VRDNs, (Bank of America N.A. LOC), 2.360%, 5/1/2019 | 500,000 | |
| 950,000 | New York State HFA (42nd and 10th Street Associates LLC), (2008 Series A) Weekly VRDNs, (FHLMC LOC), 2.220%, 5/1/2019 | 950,000 | |
| 900,000 | New York State HFA (42nd and 10th Street Associates LLC), (Series 2010A) Weekly VRDNs, (FHLMC LOC), 2.220%, 5/1/2019 | 900,000 | |
| 6,230,000 | New York State HFA (600 West 42nd Street), (2009 Series A) Weekly VRDNs, (FNMA LOC), 2.390%, 5/1/2019 | 6,230,000 | |
| 1,400,000 | New York State HFA (Dock Street Rental LLC), (Series 2013A) Weekly VRDNs, (Wells Fargo Bank, N.A. LOC), 2.300%, 5/1/2019 | 1,400,000 | |
| 13,050,000 | New York State HFA (Midtown West B LLC), (Series 2009A: 505 West 37th Street Housing) Daily VRDNs, (Landesbank Hessen-Thuringen LOC), 2.310%, 5/1/2019 | 13,050,000 | |
| 10,000,000 | New York State HFA (Midtown West B LLC), (Series 2009B: 505 West 37th Street Housing) Daily VRDNs, (Landesbank Hessen-Thuringen LOC), 2.310%, 5/1/2019 | 10,000,000 | |
| 5,715,000 | New York State HFA, (2010 Series A) Weekly VRDNs, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 2.400%, 5/1/2019 | 5,715,000 | |
| 5,000,000 | New York State HFA, (Series F) TOBs, 1.700%, Mandatory Tender 11/1/2019 | 5,000,000 |
Semi-Annual Shareholder Report
5
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| New York—continued | |||
| $3,335,000 | New York State HFA, Tender Option Bond Trust Certificates (Series 2019-ZF2800) Weekly VRDNs, (Barclays Bank PLC LIQ), 2.340%, 5/2/2019 | $3,335,000 | |
| 6,505,000 | New York State Local Government Assistance Corp., (Subordinate Series 2008B-3V) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.130%, 5/1/2019 | 6,505,000 | |
| 8,100,000 | New York State Power Authority, (Series 2), CP, (JPMorgan Chase Bank, N.A. LIQ)/(State Street Bank and Trust Co. LIQ)/(TD Bank, N.A. LIQ)/(Wells Fargo Bank, N.A. LIQ), 1.600%, Mandatory Tender 7/2/2019 | 8,100,000 | |
| 12,622,000 | New York State Power Authority, (Series 2), CP, (JPMorgan Chase Bank, N.A. LIQ)/(State Street Bank and Trust Co. LIQ)/(TD Bank, N.A. LIQ)/(Wells Fargo Bank, N.A. LIQ), 1.800%, Mandatory Tender 6/5/2019 | 12,622,000 | |
| 10,000,000 | New York State Power Authority, (Series 2), CP, (JPMorgan Chase Bank, N.A. LIQ)/(State Street Bank and Trust Co. LIQ)/(TD Bank, N.A. LIQ)/(Wells Fargo Bank, N.A. LIQ), 1.840%, Mandatory Tender 5/16/2019 | 10,000,000 | |
| 1,150,000 | New York State Urban Development Corp. (New York State Personal Income Tax Revenue Bond Fund), (Series 2004A-3-B) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.310%, 5/2/2019 | 1,150,000 | |
| 5,500,000 | New York State Urban Development Corp. (New York State Personal Income Tax Revenue Bond Fund), Clipper Tax-Exempt Certificates Trust (Series 2009-35) Weekly VRDNs, (State Street Bank and Trust Co. LIQ)/(State Street Bank and Trust Co. LOC), 2.330%, 5/2/2019 | 5,500,000 | |
| 3,245,000 | New York State Urban Development Corp. (New York State Personal Income Tax Revenue Bond Fund), State Facilities and Equipment (Series 2004A3-D) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.330%, 5/2/2019 | 3,245,000 | |
| 6,890,000 | New York State Urban Development Corp. (New York State Personal Income Tax Revenue Bond Fund), Tender Option Bond Trust Receipts (Series 2018-XF0634) Weekly VRDNs, (Toronto Dominion Bank LIQ), 2.320%, 5/2/2019 | 6,890,000 | |
| 3,750,000 | New York State Urban Development Corp. (New York State Personal Income Tax Revenue Bond Fund), Tender Option Bond Trust Receipts (Series 2018-XM0636) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.330%, 5/2/2019 | 3,750,000 | |
| 3,000,000 | New York State Urban Development Corp. (New York State Personal Income Tax Revenue Bond Fund), Tender Option Bond Trust Receipts (Series 2019-XM0724) Weekly VRDNs, (Royal Bank of Canada LIQ), 2.330%, 5/2/2019 | 3,000,000 | |
| 4,160,000 | New York, NY City Industrial Agency (Jamaica First Parking LLC), (Series 2004) Weekly VRDNs, (TD Bank, N.A. LOC), 2.320%, 5/2/2019 | 4,160,000 | |
| 3,276,000 | Newark Village, NY BANs, 2.375%, 5/30/2019 | 3,276,000 | |
| 2,450,000 | Newfield, NY CSD BANs, 3.000%, 6/27/2019 | 2,452,822 |
Semi-Annual Shareholder Report
6
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| New York—continued | |||
| $14,500,000 | Nuveen New York AMT-Free Quality Municipal Income Fund, (Series 1) Weekly VRDPs, (Citibank N.A., New York LIQ), 2.360%, 5/2/2019 | $14,500,000 | |
| 10,000,000 | Nuveen New York AMT-Free Quality Municipal Income Fund, (Series 5) Weekly VRDPs, (TD Bank, N.A. LIQ), 2.340%, 5/2/2019 | 10,000,000 | |
| 4,940,000 | Onondaga County, NY IDA (Syracuse Research Corp.), (Series 2007) Weekly VRDNs, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 2.350%, 5/2/2019 | 4,940,000 | |
| 7,950,000 | Ontario County, NY Industrial Development Agency (Friends of the Finger Lakes Performing Arts Center, Inc.), (Series 2005A) Monthly VRDNs, (Citizens Bank, N.A., Providence LOC), 1.900%, 5/1/2019 | 7,950,000 | |
| 1,500,000 | Orange County, NY IDA (Tuxedo Park School), (Series 2002) Weekly VRDNs, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 2.350%, 5/2/2019 | 1,500,000 | |
| 11,020,000 | Port Authority of New York and New Jersey, (Series B), CP, 1.650%, Mandatory Tender 6/26/2019 | 11,020,000 | |
| 1,100,000 | Port Authority of New York and New Jersey, Tender Option Bond Trust Certificates (2015-ZM0099) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.330%, 5/2/2019 | 1,100,000 | |
| 1,880,000 | Rensselaer County, NY IDA (WMHT Educational Telecommunications), Civic Facility Revenue Bonds (Series 2003A) Weekly VRDNs, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 2.350%, 5/2/2019 | 1,880,000 | |
| 1,000,000 | Rome, NY, (2018 Series B) BANs, 2.750%, 8/30/2019 | 1,001,586 | |
| 6,000,000 | Sherrill, NY City School District, (2018 Series C) BANs, 3.000%, 7/26/2019 | 6,011,210 | |
| 1,190,000 | Suffolk County, NY IDA (Guide Dog Foundation, Inc.) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.350%, 5/2/2019 | 1,190,000 | |
| 5,700,000 | Triborough Bridge & Tunnel Authority, NY, (Series 2005B-3) Daily VRDNs, (State Street Bank and Trust Co. LOC), 2.270%, 5/1/2019 | 5,700,000 | |
| 12,500,000 | Triborough Bridge & Tunnel Authority, NY, (Series B-1) Daily VRDNs, (Bank of America N.A. LOC), 2.310%, 5/1/2019 | 12,500,000 | |
| 4,950,000 | Triborough Bridge & Tunnel Authority, NY, (Series B-2) Daily VRDNs, (Citibank N.A., New York LOC), 2.220%, 5/1/2019 | 4,950,000 | |
| 5,310,000 | Utica, NY Industrial Development Agency Civic Facility (Munson-Williams-Proctor Arts Institute), (Series 2006) Weekly VRDNs, (Citizens Bank, N.A., Providence LOC), 2.470%, 5/2/2019 | 5,310,000 | |
| 2,290,000 | Van Buren, NY BANs, 3.000%, 1/17/2020 | 2,301,200 | |
| 3,190,000 | Watertown, NY (Town of) BANs, 2.750%, 4/16/2020 | 3,218,546 | |
| 2,500,000 | Waverly, NY CSD BANs, 2.750%, 6/28/2019 | 2,502,732 |
Semi-Annual Shareholder Report
7
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| New York—continued | |||
| $4,538,873 | Waverly, NY, (Series 2018) BANs, 2.750%, 12/19/2019 | $4,542,265 | |
| TOTAL INVESTMENT IN SECURITIES—93.7% (AT AMORTIZED COST)2 | 475,418,950 | ||
| OTHER ASSETS AND LIABILITIES - NET—6.3%3 | 32,232,633 | ||
| TOTAL NET ASSETS—100% | $507,651,583 |
At April 30, 2019, the Fund held no securities that are subject to the federal alternative minimum tax (AMT).
| 1 | Current rate and current maturity or next reset date shown for floating rate notes and variable rate notes/demand instruments. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
| 2 | Also represents cost for federal tax purposes. |
| 3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Note: The categories of investments are shown as a percentage of total net assets at April 30, 2019.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
In valuing the Fund's assets, as of April 30, 2019, all investments of the Fund are valued using amortized cost, which is a methodology utilizing Level 2 inputs.
Semi-Annual Shareholder Report
8
The following acronyms are used throughout this portfolio:
| AMT | —Alternative Minimum Tax |
| BANs | —Bond Anticipation Notes |
| CP | —Commercial Paper |
| CSD | —Central School District |
| FHLB | —Federal Home Loan Bank |
| FHLMC | —Federal Home Loan Mortgage Corporation |
| FNMA | —Federal National Mortgage Association |
| GTD | —Guaranteed |
| HFA | —Housing Finance Authority |
| IDA | —Industrial Development Authority |
| LIQ | —Liquidity Agreement |
| LOC | —Letter of Credit |
| RANs | —Revenue Anticipation Notes |
| TOBs | —Tender Option Bonds |
| VRDNs | —Variable Rate Demand Notes |
| VRDPs | —Variable Rate Demand Preferreds |
See Notes which are an integral part of the Financial Statements
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9
Financial Highlights–Wealth Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.007 | 0.011 | 0.006 | 0.002 | 0.0001 | 0.0001 |
| Net realized gain | 0.0001 | — | 0.0001 | — | 0.0001 | 0.0001 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.007 | 0.011 | 0.006 | 0.002 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.007) | (0.011) | (0.006) | (0.002) | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | — | (0.000)1 | — | (0.000)1 | (0.000)1 | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.007) | (0.011) | (0.006) | (0.002) | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.69% | 1.08% | 0.56% | 0.16% | 0.01% | 0.01% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 0.32%3 | 0.32% | 0.32% | 0.22%4 | 0.12% | 0.13% |
| Net investment income | 1.39%3 | 1.10% | 0.58% | 0.10% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.18%3 | 0.25% | 0.34% | 0.40% | 0.48% | 0.45% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $279,695 | $211,511 | $111,061 | $70,496 | $215,975 | $260,579 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.22% after taking into account these expense reductions. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
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10
Financial Highlights–Service Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.006 | 0.009 | 0.003 | 0.001 | 0.0001 | 0.0001 |
| Net realized gain | 0.0001 | — | 0.0001 | — | 0.0001 | 0.0001 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.006 | 0.009 | 0.003 | 0.001 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.006) | (0.009) | (0.003) | (0.001) | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | — | (0.000)1 | — | (0.000)1 | (0.000)1 | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.006) | (0.009) | (0.003) | (0.001) | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.58% | 0.86% | 0.34% | 0.06% | 0.01% | 0.01% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 0.54%3 | 0.54% | 0.54% | 0.30%4 | 0.12% | 0.13% |
| Net investment income | 1.17%3 | 0.82% | 0.35% | 0.02% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.46%3 | 0.55% | 0.62% | 0.79% | 0.96% | 0.92% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $183,018 | $28,662 | $64,510 | $35,692 | $194,225 | $183,805 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.30% after taking into account these expense reductions. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
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11
Financial Highlights–Cash II Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.005 | 0.006 | 0.001 | 0.0001 | 0.0001 | 0.0001 |
| Net realized gain | 0.0001 | — | 0.0001 | — | 0.0001 | 0.0001 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.005 | 0.006 | 0.001 | 0.0001 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.005) | (0.006) | (0.001) | (0.000)1 | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | — | (0.000)1 | — | (0.000)1 | (0.000)1 | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.005) | (0.006) | (0.001) | (0.000)1 | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.47% | 0.63% | 0.13% | 0.02% | 0.01% | 0.01% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 0.77%3 | 0.77% | 0.76% | 0.29%4 | 0.12% | 0.13% |
| Net investment income | 0.94%3 | 0.62% | 0.13% | 0.01% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.23%3 | 0.32% | 0.41% | 0.81% | 0.98% | 0.95% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $9,880 | $9,535 | $10,982 | $8,457 | $65,870 | $103,961 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.29% after taking into account these expense reductions. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
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12
Financial Highlights–Cash Series Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.003 | 0.004 | 0.0001 | 0.0001 | 0.0001 | 0.0001 |
| Net realized gain | 0.0001 | — | 0.0001 | — | 0.0001 | 0.0001 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.003 | 0.004 | 0.0001 | 0.0001 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.003) | (0.004) | (0.000)1 | (0.000)1 | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | — | (0.000)1 | — | (0.000)1 | (0.000)1 | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.003) | (0.004) | (0.000)1 | (0.000)1 | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.34% | 0.38% | 0.01% | 0.02% | 0.01% | 0.01% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 1.02%3 | 1.02% | 0.86% | 0.36%4 | 0.12% | 0.13% |
| Net investment income | 0.69%3 | 0.33% | 0.01% | 0.01% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.33%3 | 0.42% | 0.65% | 1.11% | 1.33% | 1.30% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $35,059 | $35,414 | $141,388 | $172,288 | $285,077 | $314,108 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.36% after taking into account these expense reductions. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
13
Statement of Assets and Liabilities
April 30, 2019 (unaudited)
| Assets: | ||
| Investment in securities, at amortized cost and fair value | $475,418,950 | |
| Cash | 330,784 | |
| Income receivable | 2,090,861 | |
| Receivable for shares sold | 30,004,828 | |
| TOTAL ASSETS | 507,845,423 | |
| Liabilities: | ||
| Payable for shares redeemed | $27,566 | |
| Income distribution payable | 25,485 | |
| Payable for investment adviser fee (Note 4) | 1,919 | |
| Payable for administrative fees (Note 4) | 1,039 | |
| Payable for transfer agent fee | 18,090 | |
| Payable for portfolio accounting fees | 33,351 | |
| Payable for distribution services fee (Note 4) | 21,015 | |
| Payable for other service fees (Note 4) | 47,090 | |
| Payable for share registration costs | 15,252 | |
| Accrued expenses (Note 4) | 3,033 | |
| TOTAL LIABILITIES | 193,840 | |
| Net assets for 507,607,651 shares outstanding | $507,651,583 | |
| Net Assets Consist of: | ||
| Paid-in capital | $507,607,651 | |
| Total distributable earnings (loss) | 43,932 | |
| TOTAL NET ASSETS | $507,651,583 | |
| Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
| Wealth Shares: | ||
| $279,694,752 ÷ 279,670,792 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Service Shares: | ||
| $183,018,226 ÷ 183,002,193 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Cash II Shares: | ||
| $9,880,038 ÷ 9,879,189 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Cash Series Shares: | ||
| $35,058,567 ÷ 35,055,477 shares outstanding, no par value, unlimited shares authorized | $1.00 |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
14
Statement of Operations
Six Months Ended April 30, 2019 (unaudited)
| Investment Income: | |||
| Interest | $3,840,152 | ||
| Expenses: | |||
| Investment adviser fee (Note 4) | $672,037 | ||
| Administrative fee (Note 4) | 178,791 | ||
| Custodian fees | 8,039 | ||
| Transfer agent fee | 127,966 | ||
| Directors'/Trustees' fees (Note 4) | 1,446 | ||
| Auditing fees | 10,960 | ||
| Legal fees | 6,644 | ||
| Portfolio accounting fees | 67,106 | ||
| Distribution services fee (Note 4) | 336,161 | ||
| Other service fees (Notes 2 and 4) | 270,898 | ||
| Share registration costs | 37,411 | ||
| Printing and postage | 11,146 | ||
| Miscellaneous (Note 4) | 3,855 | ||
| TOTAL EXPENSES | 1,732,460 | ||
| Waivers and Reimbursement: | |||
| Waiver of investment adviser fee (Note 4) | $(397,583) | ||
| Waiver/reimbursement of other operating expenses (Notes 2 and 4) | (266,577) | ||
| TOTAL WAIVERS AND REIMBURSEMENT | (664,160) | ||
| Net expenses | 1,068,300 | ||
| Net investment income | 2,771,852 | ||
| Net realized gain on investments | 40,695 | ||
| Change in net assets resulting from operations | $2,812,547 |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
15
Statement of Changes in Net Assets
| Six Months Ended (unaudited) 4/30/2019 | Year Ended 10/31/2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations: | ||
| Net investment income | $2,771,852 | $2,409,618 |
| Net realized gain | 40,695 | — |
| CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 2,812,547 | 2,409,618 |
| Distributions to Shareholders: | ||
| Wealth Shares | (1,607,447) | (1,739,804) |
| Service Shares | (984,577) | (409,245) |
| Cash II Shares | (52,114) | (68,743) |
| Cash Series Shares | (127,619) | (190,481) |
| CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (2,771,757) | (2,408,273) |
| Share Transactions: | ||
| Proceeds from sale of shares | 559,866,428 | 590,949,152 |
| Net asset value of shares issued to shareholders in payment of distributions declared | 2,582,945 | 2,227,719 |
| Cost of shares redeemed | (339,960,512) | (635,997,444) |
| CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 222,488,861 | (42,820,573) |
| Change in net assets | 222,529,651 | (42,819,228) |
| Net Assets: | ||
| Beginning of period | 285,121,932 | 327,941,160 |
| End of period | $507,651,583 | $285,121,932 |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
16
Notes to Financial Statements
April 30, 2019 (unaudited)
1. ORGANIZATION
Money Market Obligations Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of 20 portfolios. The financial statements included herein are only those of Federated New York Municipal Cash Trust (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers four classes of shares: Wealth Shares, Service Shares, Cash II Shares and Cash Series Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to provide current income exempt from federal regular income tax and the personal income taxes imposed by New York State and New York municipalities consistent with stability of principal. Interest income from the Fund's investments may be subject to the federal AMT for individuals.
The Fund operates as a retail money market fund. As a retail money market fund, the Fund: (1) will generally continue to use amortized cost to value its portfolio securities and transact at a stable $1.00 net asset value (NAV); (2) has adopted policies and procedures reasonably designed to limit investments in the Fund to accounts beneficially owned by natural persons as required for a retail money market fund by Rule 2a-7 under the Act; and (3) has adopted policies and procedures to impose liquidity fees on redemptions and/or temporary redemption gates in the event that the Fund's weekly liquid assets were to fall below a designated threshold, if the Fund's Board of Trustees (the “Trustees”) determine such liquidity fees or redemption gates are in the best interest of the Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
Securities are valued at amortized cost. Under the amortized cost valuation method, an investment is valued initially at its cost as determined in accordance with GAAP. The Fund then adjusts the amount of interest income accrued each day over the term of the investment to account for any difference between the initial cost of the investment and the amount payable at its maturity. If amortized cost is determined not to approximate fair value, the value of the portfolio securities will be determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share.
The Trustees have ultimate responsibility for determining the fair value of investments. The Trustees have appointed a valuation committee (“Valuation Committee”) comprised of officers of the Fund, Federated Investment Management Company (the “Adviser”) and certain of the Adviser's affiliated companies to assist in determining fair value of securities and in overseeing the comparison of amortized cost to market-based value. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value
Semi-Annual Shareholder Report
17
evaluations of the current value of certain investments for purposes of monitoring the relationship of market-based value and amortized cost. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs and assumptions), and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared daily and paid monthly. Amortization/accretion of premium and discount is included in investment income. Investment income, realized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. The detail of the total fund expense waivers and reimbursement of $664,160 is disclosed in various locations in this Note 2 and Note 5.
Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Other Service Fees
The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund's Wealth Shares, Service Shares, Cash II Shares and Cash Series Shares to unaffiliated financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts.
Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees. For the six months ended April 30, 2019, other service fees for the Fund were as follows:
| Other Service Fees Incurred | Other Service Fees Reimbursed | |
| Service Shares | $210,641 | $(58,810) |
| Cash II Shares | 13,816 | — |
| Cash Series Shares | 46,441 | — |
| TOTAL | $270,898 | $(58,810) |
For the six months ended April 30, 2019, the Fund's Wealth Shares did not incur other service fees.
Federal Taxes
It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the six months ended April 30, 2019, the Fund did not have a liability for any uncertain tax positions. The Fund
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18
recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of April 30, 2019, tax years 2015 through 2018 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.
When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Restricted Securities
The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. Restricted securities are valued at amortized cost in accordance with Rule 2a-7 under the Act.
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. The Fund applies investment company accounting and reporting guidance.
3. SHARES OF BENEFICIAL INTEREST
The following tables summarize share activity:
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Wealth Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 253,439,171 | $253,439,171 | 338,736,312 | $338,736,312 |
| Shares issued to shareholders in payment of distributions declared | 1,474,785 | 1,474,785 | 1,696,840 | 1,696,840 |
| Shares redeemed | (186,751,539) | (186,751,539) | (239,985,503) | (239,985,503) |
| NET CHANGE RESULTING FROM WEALTH SHARE TRANSACTIONS | 68,162,417 | $68,162,417 | 100,447,649 | $100,447,649 |
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| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Service Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 278,957,112 | $278,957,112 | 108,636,153 | $108,636,153 |
| Shares issued to shareholders in payment of distributions declared | 931,473 | 931,473 | 280,484 | 280,484 |
| Shares redeemed | (125,548,305) | (125,548,305) | (144,764,861) | (144,764,861) |
| NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS | 154,340,280 | $154,340,280 | (35,848,224) | $(35,848,224) |
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Cash II Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 8,057,276 | $8,057,276 | 18,428,713 | $18,428,713 |
| Shares issued to shareholders in payment of distributions declared | 50,919 | 50,919 | 68,484 | 68,484 |
| Shares redeemed | (7,763,783) | (7,763,783) | (19,944,089) | (19,944,089) |
| NET CHANGE RESULTING FROM CASH II SHARE TRANSACTIONS | 344,412 | $344,412 | (1,446,892) | $(1,446,892) |
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Cash Series Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 19,412,869 | $19,412,869 | 125,147,974 | $125,147,974 |
| Shares issued to shareholders in payment of distributions declared | 125,768 | 125,768 | 181,911 | 181,911 |
| Shares redeemed | (19,896,885) | (19,896,885) | (231,302,991) | (231,302,991) |
| NET CHANGE RESULTING FROM CASH SERIES SHARE TRANSACTIONS | (358,248) | $(358,248) | (105,973,106) | $(105,973,106) |
| NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 222,488,861 | $222,488,861 | (42,820,573) | $(42,820,573) |
4. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.30% of the Fund's average daily net assets. Prior to February 28, 2018, the annual advisory fee was 0.40% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, the Adviser voluntarily waived $397,583 of its fee.
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Administrative Fee
Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below:
| Administrative Fee | Average Daily Net Assets of the Investment Complex |
| 0.100% | on assets up to $50 billion |
| 0.075% | on assets over $50 billion |
Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, the annualized fee paid to FAS was 0.080% of average daily net assets of the Fund.
In addition, FAS may charge certain out-of-pocket expenses to the Fund.
Distribution Services Fee
The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Service Shares, Cash II Shares and Cash Series Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses at the following percentages of average daily net assets annually, to compensate FSC:
| Percentage of Average Daily Net Assets of Class | |
| Service Shares | 0.25% |
| Cash II Shares | 0.25% |
| Cash Series Shares | 0.60% |
Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, distribution services fees for the Fund were as follows:
| Distribution Services Fees Incurred | Distribution Services Fees Waived | |
| Service Shares | $210,877 | $(177,138) |
| Cash II Shares | 13,826 | (2,765) |
| Cash Series Shares | 111,458 | (27,864) |
| TOTAL | $336,161 | $(207,767) |
When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended April 30, 2019, FSC retained $47,447 fees paid by the Fund.
Other Service Fees
For the six months ended April 30, 2019, FSSC received $915 and reimbursed $58,810 of the other service fees disclosed in Note 2.
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Expense Limitation
Due to the possibility of changes in market conditions and other factors, there can be no assurance that the level of waivers/reimbursement/reduction of Fund expenses reflected in the financial highlights will be maintained in the future. However, the Adviser and certain of its affiliates (which may include FSC, FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, extraordinary expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund's Wealth Shares, Service Shares, Cash II Shares and Cash Series Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.32%, 0.54%, 0.77% and 1.02% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) March 1, 2020; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.
Interfund Transactions
During the six months ended April 30, 2019, the Fund engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and amounted to $219,595,000 and $136,775,000, respectively.
Directors'/Trustees' and Miscellaneous Fees
Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Directors'/Trustees' fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
5. CONCENTRATION OF RISK
Since the Fund invests a substantial portion of its assets in issuers located in one state, it will be more susceptible to factors adversely affecting issuers of that state than would be a comparable tax-exempt mutual fund that invests nationally. In order to reduce the credit risk associated with such factors, at April 30, 2019, 33.0% of the securities in the portfolio of investments were backed by letters of credit or bond insurance of various financial institutions and financial guaranty assurance agencies. The largest percentage of investments insured by or supported (backed) by a letter of credit from any one institution or agency, was 6.2% of total investments.
6. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of April 30, 2019, there were no outstanding loans. During the six months ended April 30, 2019, the program was not utilized.
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Shareholder Expense Example (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2018 to April 30, 2019.
ACTUAL EXPENSES
The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
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Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Beginning Account Value 11/1/2018 | Ending Account Value 4/30/2019 | Expenses Paid During Period1 | |
| Actual: | |||
| Wealth Shares | $1,000 | $1,006.90 | $1.59 |
| Service Shares | $1,000 | $1,005.80 | $2.69 |
| Cash II Shares | $1,000 | $1,004.70 | $3.83 |
| Cash Series Shares | $1,000 | $1,003.40 | $5.07 |
| Hypothetical (assuming a 5% return before expenses): | |||
| Wealth Shares | $1,000 | $1,023.20 | $1.61 |
| Service Shares | $1,000 | $1,022.10 | $2.71 |
| Cash II Shares | $1,000 | $1,021.00 | $3.86 |
| Cash Series Shares | $1,000 | $1,019.70 | $5.11 |
| 1 | Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
| Wealth Shares | 0.32% |
| Service Shares | 0.54% |
| Cash II Shares | 0.77% |
| Cash Series Shares | 1.02% |
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Evaluation and Approval of Advisory Contract–May 2018
Federated new york municipal cash trust (the “Fund”)
At its meetings in May 2018, the Fund's Board of Trustees (the “Board”), including a majority of those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the Fund's investment advisory contract for an additional one-year term. The Board's decision regarding the contract reflects the exercise of its business judgment after considering all of the information received on whether to continue the existing arrangements.
The Board had previously appointed a Senior Officer, whose duties included specified responsibilities relating to the process by which advisory fees are to be charged to a fund advised by Federated Investment Management Company (the “Adviser”) or its affiliates (collectively, “Federated”) (each, a “Federated fund”). The Senior Officer's responsibilities included preparing and furnishing to the Board an annual independent written evaluation that covered topics discussed below. In December 2017, the Senior Officer position was eliminated. Notwithstanding the elimination of the Senior Officer position, at the request of the Independent Trustees, the Fund's Chief Compliance Officer (the CCO) furnished to the Board in advance of its May 2018 meetings an independent written evaluation covering substantially the same topics that had been covered in the Senior Officer's written evaluation in prior years. The Board considered the CCO's independent written evaluation (the “CCO Fee Evaluation Report”), along with other information, in evaluating the reasonableness of the Fund's management fee and in deciding to approve the continuation of the investment advisory contract. Consistent with the former Senior Officer position, the CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees.
The Board also considered judicial decisions concerning allegedly excessive investment advisory fees in making its decision. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser's fiduciary duty with respect to its receipt of compensation from a fund: (1) the nature and quality of the services provided by an adviser to a fund and its shareholders (including the performance of the fund, its benchmark and comparable funds); (2) an adviser's cost of providing the services (including the profitability to an adviser of providing advisory services to a fund); (3) the extent to which an adviser may realize “economies of scale” as a fund grows larger and, if such economies of scale exist, whether they have been shared with a fund and its shareholders or the family of funds; (4) any “fall-out” financial benefits that accrue to an adviser because of its relationship with a fund (including research services received from brokers that execute fund trades and any fees
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paid to affiliates of an adviser for services rendered to a fund); (5) comparative fee and expense structures (including a comparison of fees paid to an adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the Adviser or its affiliates for what might be viewed as like services); and (6) the extent of care, conscientiousness and independence with which the fund's board members perform their duties and their expertise (including whether they are fully informed about all facts the board deems relevant to its consideration of an adviser's services and fees). The Board noted that the Securities and Exchange Commission (SEC) disclosure requirements regarding the basis for the Board's approval of the Fund's investment advisory contract generally align with the factors listed above. The Board was aware of these factors and was guided by them in its review of the Fund's investment advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.
The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds. The Independent Trustees were assisted in their deliberations by independent legal counsel.
In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board received detailed information about the Fund and the Federated organization throughout the year, and in connection with its May meetings at which the Board's formal approval of the advisory and subadvisory contracts occurred. In this regard, Federated provided much of this information at each regular meeting of the Board, and furnished additional information specifically in connection with the May meetings. In the months preceding the May meetings, the Board requested and reviewed written materials prepared by Federated in response to requests on behalf of the Independent Trustees encompassing a wide variety of topics. At the May meetings, in addition to meeting in separate sessions of the Independent Trustees without management present, senior management of the Adviser also met with the Independent Trustees and their counsel to discuss the materials presented and such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the advisory and subadvisory contracts. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose.
The Board's consideration of the investment advisory contract included review of the CCO Fee Evaluation Report, accompanying data and additional information covering the following matters among others: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in terms relative to its particular investment program and certain competitor or “peer group” funds and/or other benchmarks, as appropriate) and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses, including the advisory fee and the overall expense structure of the Fund (both
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in absolute terms and relative to similar and/or competing funds), with due regard for contractual or voluntary expense limitations; the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial and other risks assumed by the Adviser in sponsoring the Fund; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are generally available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.
While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged by other advisers for managing funds with comparable investment programs, the Board has found the use of such comparisons to be relevant to its deliberations. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund's total expense ratio (i.e., gross and net advisory fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated using data supplied by independent fund ranking organizations (the “Peer Group”). The Board received a description of the composition and methodology used to select the Peer Group. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because it is believed that they are more relevant. For example, other mutual funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles. Also, they are the type of investment vehicle, in fact, chosen and maintained by the Fund's investors. The range of their fees and expenses, therefore, appears to be a relevant indicator of what consumers have found to be reasonable in the marketplace in which the Fund competes.
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The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund's fee rates relative to its Peer Group. In this regard, the Board noted that the contractual advisory fee rate was above the median of the relevant Peer Group, but the Board noted the applicable waivers and reimbursements, and the overall expense structure of the Fund remained competitive in the context of other factors considered by the Board.
For comparison, the CCO reviewed the fees charged by Federated for providing advisory services to products other than the Federated funds (e.g., institutional and separate accounts and third-party unaffiliated mutual funds for which Federated serves as sub-adviser) (referenced to as “Comparable Funds/Accounts”). With respect to Comparable Funds/Accounts other than third-party mutual funds, the CCO concluded that they are inherently different products. Those differences include, but are not limited to, different types of targeted investors; different applicable laws and regulations; different legal structures; different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; and the time spent by portfolio managers and their teams, as well as personnel in the Funds Financial Services, Legal, Compliance and Risk Management departments, in reviewing securities pricing, addressing different administrative responsibilities, addressing different degrees of risk associated with management and a variety of different costs. The CCO also reviewed the differences in the nature of the services required for Federated to manage its proprietary mutual fund business versus managing a discrete pool of assets as a sub-adviser to another institution's mutual fund, and that Federated generally performs significant additional services and assumes substantially greater risk in managing the Fund and other Federated funds than in its role as sub-adviser to an unaffiliated third-party mutual fund. The CCO did not consider the fees for providing advisory services to Comparable Funds/Accounts to be determinative in judging the appropriateness of the Federated funds' advisory fees.
Following such evaluation, and full deliberations, the Board concluded that the fees and expenses of the Fund are reasonable and supported renewal of the Fund's investment advisory contract.
The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of the Adviser and its affiliates dedicated to the Fund. In this regard, the Board evaluated, among other things, the Adviser's personnel, experience, track record, overall reputation and willingness to invest in personnel and infrastructure that benefit the Fund. In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and the Adviser's ability and experience in attracting and retaining qualified personnel to service the Fund. The Board noted the compliance program of the Adviser and the compliance-related resources provided to the Fund by the Adviser, including the Adviser's commitment to respond to rulemaking initiatives of the SEC. The Fund's ability to deliver
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competitive performance when compared to its Peer Group was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund's investment program. The Adviser's ability to execute this program was one of the Board's considerations in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services warrant the continuation of the investment advisory contract.
In evaluating the Fund's investment performance, the Board considered performance results in light of the Fund's investment objective, strategies and risks, as disclosed in the Fund's prospectus. The Board considered detailed investment reports on the Fund's performance that were provided to the Board throughout the year and in connection with the May meetings. The CCO also reviewed information regarding the performance of other mutual funds in the Peer Group, noting the CCO's view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases individual funds may exhibit significant and unique differences in their objectives and management techniques when compared to other funds within a Peer Group.
The Fund's performance was above the median of the relevant Peer Group for the one-year period covered by the CCO Fee Evaluation Report. The Board also considered the relatively tight dispersion of performance data with respect to the Fund and its Peer Group.
Following such evaluation, and full deliberations, the Board concluded that the performance of the Fund supported renewal of the Fund's investment advisory contract.
The Board also received financial information about Federated, including information regarding the compensation and ancillary (or “fall-out”) benefits Federated derived from its relationships with the Federated funds. This information covered not only the fees under the investment advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator and distributor). In this regard, the Board considered that certain Federated subsidiaries provide distribution and shareholder services to the Federated funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The information also detailed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a Federated fund to be competitive in the marketplace, the Adviser and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to Federated fund investors and/or indicated to the Board their intention to do so in the future. Moreover, the Board receives regular reporting as to the institution, adjustment or elimination of these voluntary waivers.
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In 2018, the Board approved a reduction of 10 basis points in the contractual advisory fee.
Federated furnished information, requested by the CCO, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the CCO. The CCO noted that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs continues to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable, since a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated fund and may produce unintended consequences. The allocation information, including the CCO's view that fund-by-fund estimations may be unreliable, was considered in the evaluation by the Board.
The Board and the CCO also reviewed information compiled by Federated comparing its profitability information to other publicly held fund management companies, including information regarding profitability trends over time. In this regard, the CCO concluded that Federated's profit margins did not appear to be excessive. The CCO also noted that Federated appeared financially sound, with the resources necessary to fulfill its obligations under its contracts with the Fund.
The CCO Fee Evaluation Report also discussed the notion of possible realization of “economies of scale” as a fund grows larger. In this regard, the Board considered that the Adviser has made significant and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, shareholder services, compliance, internal audit and risk management functions, as well as systems technology (including technology relating to cybersecurity) and that the benefits of these efforts (as well as any economies of scale, should they exist) were likely to be shared with the Federated fund family as a whole. The Board noted that the Adviser's investments in these areas are extensive. In addition, the Board considered that the Adviser and its affiliates have frequently waived fees and/or reimbursed expenses and that this has allowed fund shareholders to share potential economies of scale with shareholders. The Board also considered that such waivers and reimbursements can provide protection from an increase in expenses if a Federated fund's assets decline. Federated, as it does throughout the year, and specifically in connection with the Board's review of the advisory and subadvisory contracts, furnished information relative to revenue sharing or adviser-paid fees. Federated and the CCO noted that this information should be viewed to determine if there was an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, and should not be viewed to determine the appropriateness of advisory fees because it would represent marketing and distribution expenses. The Board also noted the absence of any applicable
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regulatory or industry guidelines on this subject, which (as discussed in the CCO Fee Evaluation Report) is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with “breakpoints” that serve to reduce the fee as a fund attains a certain size.
The CCO stated that his observations and the information accompanying the CCO Fee Evaluation Report supported a finding by the Board that the management fee for the Fund was reasonable. Under these circumstances, no objection was raised to the continuation of, the Fund's investment advisory contract. The CCO also recognized that the Board's evaluation of the Federated funds' advisory and subadvisory arrangements is a continuing and on-going process that is informed by the information that the Board requests and receives from management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its on-going oversight of the Federated funds.
In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an investment advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the investment advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund. The Board concluded that, in light of the factors summarized above, including the nature, quality and scope of the services provided to the Fund by the Adviser and its affiliates, continuation of the investment advisory contract was appropriate.
The Board based its decision to approve the investment advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the continuation of the contract reflects its view that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing arrangement.
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Voting Proxies on Fund Portfolio Securities
A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with the Fund and share class name at www.FederatedInvestors.com/FundInformation. Form N-PX filings are also available at the SEC's website at www.sec.gov.
Portfolio Schedule
The Fund files with the SEC a complete schedule of its portfolio holdings as of the close of each month on “Form N-MFP.” Form N-MFP is available on the SEC's website at www.sec.gov. You may access Form N-MFP via the link to the Fund and share class name at www.FederatedInvestors.com.
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You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
This Report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called “householding”), as permitted by applicable rules. The Fund's “householding” program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the “householding” program. The Fund is also permitted to treat a shareholder as having given consent (“implied consent”) if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to “household” at least sixty (60) days before it begins “householding” and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to “opt out” of “householding.” Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of “householding” at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.
Semi-Annual Shareholder Report
33
Federated New York Municipal Cash Trust
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedInvestors.com
or call 1-800-341-7400.
or call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 608919858
CUSIP 60934N294
CUSIP 60934N310
CUSIP 608919866
CUSIP 60934N294
CUSIP 60934N310
CUSIP 608919866
8060106 (6/19)
Federated is a registered trademark of Federated Investors, Inc.
2019 ©Federated Investors, Inc.
2019 ©Federated Investors, Inc.
Semi-Annual Shareholder Report
April 30, 2019
| Share Class | Ticker | Wealth | NISXX |
Federated New York Municipal Cash Trust
A Portfolio of Money Market Obligations Trust
IMPORTANT NOTICE REGARDING REPORT DELIVERY
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4. Your election to receive reports in paper will apply to all funds held with the Fund complex or your financial intermediary.
The Fund is a Retail Money Market Fund and is only available for investment to accounts beneficially owned by natural persons.
Not FDIC Insured ■ May Lose Value ■ No Bank Guarantee
Portfolio of Investments Summary Tables (unaudited)
At April 30, 2019, the Fund's portfolio composition1 was as follows:
| Security Type | Percentage of Total Net Assets |
| Variable Rate Demand Instruments | 63.4% |
| Municipal Notes | 22.1% |
| Commercial Paper | 8.2% |
| Other Assets and Liabilities—Net2 | 6.3% |
| TOTAL | 100.0% |
At April 30, 2019, the Fund's effective maturity schedule3 was as follows:
| Securities With an Effective Maturity of: | Percentage of Total Net Assets |
| 1-7 Days | 60.6% |
| 8-30 Days | 6.9% |
| 31-90 Days | 14.6% |
| 91-180 Days | 2.6% |
| 181 Days or more | 9.0% |
| Other Assets and Liabilities—Net2 | 6.3% |
| TOTAL | 100.0% |
| 1 | See the Fund's Prospectus and Statement of Additional Information for a description of these investments. |
| 2 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
| 3 | Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940, which regulates money market mutual funds. |
Semi-Annual Shareholder Report
1
Portfolio of Investments
April 30, 2019 (unaudited)
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—93.7% | ||
| New York—93.7% | |||
| $385,000 | Albany, NY IDA (Albany Local Development Corp.), (Series 2002: Corning Preserve/Hudson Riverfront) Weekly VRDNs, (KeyBank, N.A. LOC), 2.500%, 5/2/2019 | $385,000 | |
| 4,400,000 | Albany, NY IDA (Renaissance Corporation of Albany), (Series 2004) Weekly VRDNs, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 2.350%, 5/2/2019 | 4,400,000 | |
| 3,000,000 | Argyle, NY CSD BANs, 3.000%, 6/6/2019 | 3,002,900 | |
| 4,840,000 | Aurora, NY BANs, 2.375%, 4/2/2020 | 4,865,586 | |
| 5,229,500 | Batavia Town, NY BANs, 3.000%, 3/12/2020 | 5,273,764 | |
| 3,328,183 | Bath, NY CSD BANs, 2.750%, 6/21/2019 | 3,331,923 | |
| 2,184,760 | Belfast, NY CSD BANs, 2.750%, 8/1/2019 | 2,188,918 | |
| 2,500,000 | Binghamton, NY City School District RANs, 2.750%, 1/24/2020 | 2,512,574 | |
| 2,909,000 | Cold Spring, NY BANs, 2.750%, 5/10/2019 | 2,909,456 | |
| 2,130,000 | Columbia County, NY IDA (Columbia Memorial Hospital), (Series 2008A) Weekly VRDNs, (HSBC Bank USA, N.A. LOC), 2.390%, 5/2/2019 | 2,130,000 | |
| 3,100,000 | Cortland, NY BANs, 2.375%, 4/10/2020 | 3,117,071 | |
| 5,054,184 | Depew, NY Union Free School District BANs, 2.000%, 8/30/2019 | 5,058,115 | |
| 8,658,000 | Elba, NY, (Series 2018A) BANs, 2.750%, 11/26/2019 | 8,660,932 | |
| 7,000,000 | Gates Chili, NY CSD BANs, 2.250%, 6/27/2019 | 7,005,174 | |
| 2,000,000 | Harrisville, NY CSD BANs, 2.750%, 6/28/2019 | 2,002,336 | |
| 2,975,000 | Hastings, NY BANs, 2.750%, 7/3/2019 | 2,978,517 | |
| 2,265,000 | Herkimer County, NY CSD, (Series 2018A) BANs, 2.750%, 8/1/2019 | 2,269,647 | |
| 5,030,000 | Hudson Yards Infrastructure Corp. NY, Tender Option Bond Trust Receipts (Series 2019-ZM0737) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.380%, 5/2/2019 | 5,030,000 | |
| 2,075,086 | Lloyd, NY BANs, 3.000%, 2/14/2020 | 2,087,934 | |
| 9,875,000 | MTA Transportation Revenue, Tender Option Bond Trust Receipts (Series 2018-XM0697) Weekly VRDNs, (Bank of America N.A. LIQ), 2.450%, 5/2/2019 | 9,875,000 | |
| 3,925,000 | Madison County, NY BANs, 2.125%, 4/10/2020 | 3,932,342 | |
| 2,980,000 | Manchester-Shortsville, NY CSD BANs, 2.500%, 7/30/2019 | 2,984,030 | |
| 900,000 | Metropolitan Transportation Authority, NY (MTA Transportation Revenue), (Series 2012G-2) Weekly VRDNs, (TD Bank, N.A. LOC), 2.400%, 5/2/2019 | 900,000 | |
| 18,445,000 | Metropolitan Transportation Authority, NY (MTA Transportation Revenue), Clipper Tax-Exempt Certificates Trust (Series 2009-71) Weekly VRDNs, (State Street Bank and Trust Co. LIQ)/(State Street Bank and Trust Co. LOC), 2.340%, 5/2/2019 | 18,445,000 |
Semi-Annual Shareholder Report
2
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| New York—continued | |||
| $8,500,000 | Metropolitan Transportation Authority, NY (MTA Transportation Revenue), Tender Option Bond Trust Certificates (2018-ZM0606) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.380%, 5/2/2019 | $8,500,000 | |
| 3,470,000 | Metropolitan Transportation Authority, NY (MTA Transportation Revenue), Tender Option Bond Trust Receipts (2016-XF0499) Weekly VRDNs, (Toronto Dominion Bank LIQ), 2.420%, 5/2/2019 | 3,470,000 | |
| 3,160,000 | Metropolitan Transportation Authority, NY (MTA Transportation Revenue), Tender Option Bond Trust Receipts (2016-ZF0500) Weekly VRDNs, (Toronto Dominion Bank LIQ), 2.420%, 5/2/2019 | 3,160,000 | |
| 6,205,000 | Metropolitan Transportation Authority, NY (MTA Transportation Revenue), Tender Option Bond Trust Receipts (Series 2018-XF0623) Weekly VRDNs, (Toronto Dominion Bank LIQ), 2.420%, 5/2/2019 | 6,205,000 | |
| 2,805,000 | Monroe County, NY IDA (Continuing Developmental Services, Inc.), (Series 2007) Weekly VRDNs, (Citizens Bank, N.A., Providence LOC), 2.470%, 5/2/2019 | 2,805,000 | |
| 3,100,000 | Morrisville-Eaton, NY CSD, (Series B) BANs, 3.000%, 6/28/2019 | 3,104,370 | |
| 3,725,000 | Nassau County, NY, RBC Muni Products (Series 2018 G-5) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.330%, 5/2/2019 | 3,725,000 | |
| 1,150,000 | New York City Capital Resource Corp. (Cobble Hill Health Center, Inc.), Loan Enhanced Assistance Program (Series 2008B-1) Weekly VRDNs, (Bank of America N.A. LOC), 2.370%, 5/2/2019 | 1,150,000 | |
| 5,100,000 | New York City Housing Development Corp. (2 Gold LLC), (Series 2006A: 2 Gold Street) Weekly VRDNs, (FNMA LOC), 2.130%, 5/1/2019 | 5,100,000 | |
| 3,000,000 | New York City Housing Development Corp., Tender Option Bond Trust Certificates (Series 2019-ZF2786) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.330%, 5/2/2019 | 3,000,000 | |
| 4,000,000 | New York City Housing Development Corp., Tender Option Bond Trust Certificates (Series 2019-ZF2787) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.330%, 5/2/2019 | 4,000,000 | |
| 3,805,000 | New York City Housing Development Corp., Tender Option Bond Trust Receipts (Series 2019-XF0737) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.330%, 5/2/2019 | 3,805,000 | |
| 1,575,000 | New York City, NY Daily VRDNs, (Landesbank Hessen-Thuringen LIQ), 2.310%, 5/1/2019 | 1,575,000 | |
| 6,375,000 | New York City, NY IDA (Convent of the Sacred Heart School of New York), (Series 2002) Monthly VRDNs, (FHLB of San Francisco LOC), 1.530%, 5/2/2019 | 6,375,000 | |
| 665,000 | New York City, NY IDA (Village Community School), (Series 2001) Weekly VRDNs, (TD Bank, N.A. LOC), 2.400%, 5/2/2019 | 665,000 | |
| 1,300,000 | New York City, NY Municipal Water Finance Authority, (Series 2001F-1) Daily VRDNs, (Mizuho Bank Ltd. LIQ), 2.350%, 5/1/2019 | 1,300,000 |
Semi-Annual Shareholder Report
3
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| New York—continued | |||
| $990,000 | New York City, NY Municipal Water Finance Authority, (Series 2010CC) Weekly VRDNs, (Barclays Bank PLC LIQ), 2.300%, 5/2/2019 | $990,000 | |
| 4,500,000 | New York City, NY Municipal Water Finance Authority, (Series A-1) Daily VRDNs, (Mizuho Bank Ltd. LOC), 2.300%, 5/1/2019 | 4,500,000 | |
| 2,600,000 | New York City, NY Municipal Water Finance Authority, Second General Resolution (Fiscal 2009 Series BB-2) Daily VRDNs, (Landesbank Hessen-Thuringen LIQ), 2.310%, 5/1/2019 | 2,600,000 | |
| 5,110,000 | New York City, NY Municipal Water Finance Authority, Solar Eclipse (Series 2019-0001) TOBs, (U.S. Bank, N.A. LIQ), 1.670%, Optional Tender 7/18/2019 | 5,110,000 | |
| 9,000,000 | New York City, NY Municipal Water Finance Authority, Tender Option Bond Trust Certificates (Series 2017-ZM0547) Weekly VRDNs, (Wells Fargo Bank, N.A. LIQ), 2.330%, 5/2/2019 | 9,000,000 | |
| 765,000 | New York City, NY Transitional Finance Authority, Fiscal 2014 (Subseries D-3) Daily VRDNs, (Mizuho Bank Ltd. LIQ), 2.350%, 5/1/2019 | 765,000 | |
| 11,000,000 | New York City, NY Transitional Finance Authority, Fiscal 2018 (Subseries C-6) Weekly VRDNs, (Sumitomo Mitsui Banking Corp. LIQ), 2.380%, 5/2/2019 | 11,000,000 | |
| 3,500,000 | New York City, NY Transitional Finance Authority, Future Tax Secured Subordinate Bonds (Series 2013C-5) Weekly VRDNs, (Sumitomo Mitsui Banking Corp. LIQ), 2.400%, 5/2/2019 | 3,500,000 | |
| 1,195,000 | New York City, NY Transitional Finance Authority, New York City Recovery Bonds (2003 Series 3-G) Weekly VRDNs, (Bank of New York Mellon LIQ), 2.390%, 5/1/2019 | 1,195,000 | |
| 745,000 | New York City, NY Transitional Finance Authority, New York City Recovery Bonds (Subseries 2003A-1) Weekly VRDNs, (GTD by Landesbank Hessen-Thuringen LIQ), 2.150%, 5/1/2019 | 745,000 | |
| 6,000,000 | New York City, NY Transitional Finance Authority, Tender Option Bond Trust Receipts (Series 2018-XF0643) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.330%, 5/2/2019 | 6,000,000 | |
| 325,000 | New York City, NY, (Fiscal 2006 Series F-3) Weekly VRDNs, (Sumitomo Mitsui Banking Corp. LOC), 2.380%, 5/2/2019 | 325,000 | |
| 2,600,000 | New York City, NY, (Fiscal 2010 Series G Subseries G-4) Weekly VRDNs, (Barclays Bank PLC LIQ), 2.300%, 5/2/2019 | 2,600,000 | |
| 360,000 | New York City, NY, (Fiscal 2012 Series G-7) Daily VRDNs, (MUFG Bank Ltd. LOC), 2.300%, 5/1/2019 | 360,000 | |
| 8,730,000 | New York City, NY, 2015 Series F (Subseries F-5) Daily VRDNs, (Barclays Bank PLC LIQ), 2.300%, 5/1/2019 | 8,730,000 | |
| 5,000,000 | New York City, NY, RBC Municipal Products (Series E-86) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.330%, 5/2/2019 | 5,000,000 | |
| 4,885,000 | New York City, NY, Solar Eclipse (Series 2017-0057) TOBs, (U.S. Bank, N.A. LIQ), 2.430%, Optional Tender 7/18/2019 | 4,885,000 |
Semi-Annual Shareholder Report
4
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| New York—continued | |||
| $700,000 | New York State Dormitory Authority (City University of New York), Consolidated Fifth General Resolution Revenue Bonds (Series 2008D) Weekly VRDNs, (TD Bank, N.A. LOC), 2.400%, 5/2/2019 | $700,000 | |
| 4,335,000 | New York State Dormitory Authority (New York University), Solar Eclipse (Series 2017-0034) TOBs, (U.S. Bank, N.A. LIQ), 2.430%, Optional Tender 5/23/2019 | 4,335,000 | |
| 4,000,000 | New York State Dormitory Authority (Rockefeller University), (Series 2002A-2) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.400%, 5/2/2019 | 4,000,000 | |
| 5,645,000 | New York State Dormitory Authority (Rockefeller University), (Series 2008A) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.250%, 5/2/2019 | 5,645,000 | |
| 3,000,000 | New York State Dormitory Authority (University of Rochester, NY), (Series 2006A-1) Weekly VRDNs, (Barclays Bank PLC LOC), 2.270%, 5/1/2019 | 3,000,000 | |
| 5,600,000 | New York State Dormitory Authority State Personal Income Tax Revenue, Tender Option Bond Trust Receipts (Series 2018-XG0218) Weekly VRDNs, (Bank of America N.A. LIQ), 2.330%, 5/2/2019 | 5,600,000 | |
| 700,000 | New York State HFA (100 Maiden Lane), (2004 Series A) Weekly VRDNs, (FNMA LOC), 2.350%, 5/1/2019 | 700,000 | |
| 1,000,000 | New York State HFA (160 Madison Avenue), (2013 Series A) Daily VRDNs, (Landesbank Hessen-Thuringen LOC), 2.310%, 5/1/2019 | 1,000,000 | |
| 500,000 | New York State HFA (326 Riverdale Owners LLC), (Series 2008A: 330 Riverdale Avenue Apartments) Weekly VRDNs, (Bank of America N.A. LOC), 2.360%, 5/1/2019 | 500,000 | |
| 950,000 | New York State HFA (42nd and 10th Street Associates LLC), (2008 Series A) Weekly VRDNs, (FHLMC LOC), 2.220%, 5/1/2019 | 950,000 | |
| 900,000 | New York State HFA (42nd and 10th Street Associates LLC), (Series 2010A) Weekly VRDNs, (FHLMC LOC), 2.220%, 5/1/2019 | 900,000 | |
| 6,230,000 | New York State HFA (600 West 42nd Street), (2009 Series A) Weekly VRDNs, (FNMA LOC), 2.390%, 5/1/2019 | 6,230,000 | |
| 1,400,000 | New York State HFA (Dock Street Rental LLC), (Series 2013A) Weekly VRDNs, (Wells Fargo Bank, N.A. LOC), 2.300%, 5/1/2019 | 1,400,000 | |
| 13,050,000 | New York State HFA (Midtown West B LLC), (Series 2009A: 505 West 37th Street Housing) Daily VRDNs, (Landesbank Hessen-Thuringen LOC), 2.310%, 5/1/2019 | 13,050,000 | |
| 10,000,000 | New York State HFA (Midtown West B LLC), (Series 2009B: 505 West 37th Street Housing) Daily VRDNs, (Landesbank Hessen-Thuringen LOC), 2.310%, 5/1/2019 | 10,000,000 | |
| 5,715,000 | New York State HFA, (2010 Series A) Weekly VRDNs, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 2.400%, 5/1/2019 | 5,715,000 | |
| 5,000,000 | New York State HFA, (Series F) TOBs, 1.700%, Mandatory Tender 11/1/2019 | 5,000,000 |
Semi-Annual Shareholder Report
5
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| New York—continued | |||
| $3,335,000 | New York State HFA, Tender Option Bond Trust Certificates (Series 2019-ZF2800) Weekly VRDNs, (Barclays Bank PLC LIQ), 2.340%, 5/2/2019 | $3,335,000 | |
| 6,505,000 | New York State Local Government Assistance Corp., (Subordinate Series 2008B-3V) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.130%, 5/1/2019 | 6,505,000 | |
| 8,100,000 | New York State Power Authority, (Series 2), CP, (JPMorgan Chase Bank, N.A. LIQ)/(State Street Bank and Trust Co. LIQ)/(TD Bank, N.A. LIQ)/(Wells Fargo Bank, N.A. LIQ), 1.600%, Mandatory Tender 7/2/2019 | 8,100,000 | |
| 12,622,000 | New York State Power Authority, (Series 2), CP, (JPMorgan Chase Bank, N.A. LIQ)/(State Street Bank and Trust Co. LIQ)/(TD Bank, N.A. LIQ)/(Wells Fargo Bank, N.A. LIQ), 1.800%, Mandatory Tender 6/5/2019 | 12,622,000 | |
| 10,000,000 | New York State Power Authority, (Series 2), CP, (JPMorgan Chase Bank, N.A. LIQ)/(State Street Bank and Trust Co. LIQ)/(TD Bank, N.A. LIQ)/(Wells Fargo Bank, N.A. LIQ), 1.840%, Mandatory Tender 5/16/2019 | 10,000,000 | |
| 1,150,000 | New York State Urban Development Corp. (New York State Personal Income Tax Revenue Bond Fund), (Series 2004A-3-B) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.310%, 5/2/2019 | 1,150,000 | |
| 5,500,000 | New York State Urban Development Corp. (New York State Personal Income Tax Revenue Bond Fund), Clipper Tax-Exempt Certificates Trust (Series 2009-35) Weekly VRDNs, (State Street Bank and Trust Co. LIQ)/(State Street Bank and Trust Co. LOC), 2.330%, 5/2/2019 | 5,500,000 | |
| 3,245,000 | New York State Urban Development Corp. (New York State Personal Income Tax Revenue Bond Fund), State Facilities and Equipment (Series 2004A3-D) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.330%, 5/2/2019 | 3,245,000 | |
| 6,890,000 | New York State Urban Development Corp. (New York State Personal Income Tax Revenue Bond Fund), Tender Option Bond Trust Receipts (Series 2018-XF0634) Weekly VRDNs, (Toronto Dominion Bank LIQ), 2.320%, 5/2/2019 | 6,890,000 | |
| 3,750,000 | New York State Urban Development Corp. (New York State Personal Income Tax Revenue Bond Fund), Tender Option Bond Trust Receipts (Series 2018-XM0636) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.330%, 5/2/2019 | 3,750,000 | |
| 3,000,000 | New York State Urban Development Corp. (New York State Personal Income Tax Revenue Bond Fund), Tender Option Bond Trust Receipts (Series 2019-XM0724) Weekly VRDNs, (Royal Bank of Canada LIQ), 2.330%, 5/2/2019 | 3,000,000 | |
| 4,160,000 | New York, NY City Industrial Agency (Jamaica First Parking LLC), (Series 2004) Weekly VRDNs, (TD Bank, N.A. LOC), 2.320%, 5/2/2019 | 4,160,000 | |
| 3,276,000 | Newark Village, NY BANs, 2.375%, 5/30/2019 | 3,276,000 | |
| 2,450,000 | Newfield, NY CSD BANs, 3.000%, 6/27/2019 | 2,452,822 |
Semi-Annual Shareholder Report
6
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| New York—continued | |||
| $14,500,000 | Nuveen New York AMT-Free Quality Municipal Income Fund, (Series 1) Weekly VRDPs, (Citibank N.A., New York LIQ), 2.360%, 5/2/2019 | $14,500,000 | |
| 10,000,000 | Nuveen New York AMT-Free Quality Municipal Income Fund, (Series 5) Weekly VRDPs, (TD Bank, N.A. LIQ), 2.340%, 5/2/2019 | 10,000,000 | |
| 4,940,000 | Onondaga County, NY IDA (Syracuse Research Corp.), (Series 2007) Weekly VRDNs, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 2.350%, 5/2/2019 | 4,940,000 | |
| 7,950,000 | Ontario County, NY Industrial Development Agency (Friends of the Finger Lakes Performing Arts Center, Inc.), (Series 2005A) Monthly VRDNs, (Citizens Bank, N.A., Providence LOC), 1.900%, 5/1/2019 | 7,950,000 | |
| 1,500,000 | Orange County, NY IDA (Tuxedo Park School), (Series 2002) Weekly VRDNs, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 2.350%, 5/2/2019 | 1,500,000 | |
| 11,020,000 | Port Authority of New York and New Jersey, (Series B), CP, 1.650%, Mandatory Tender 6/26/2019 | 11,020,000 | |
| 1,100,000 | Port Authority of New York and New Jersey, Tender Option Bond Trust Certificates (2015-ZM0099) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.330%, 5/2/2019 | 1,100,000 | |
| 1,880,000 | Rensselaer County, NY IDA (WMHT Educational Telecommunications), Civic Facility Revenue Bonds (Series 2003A) Weekly VRDNs, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 2.350%, 5/2/2019 | 1,880,000 | |
| 1,000,000 | Rome, NY, (2018 Series B) BANs, 2.750%, 8/30/2019 | 1,001,586 | |
| 6,000,000 | Sherrill, NY City School District, (2018 Series C) BANs, 3.000%, 7/26/2019 | 6,011,210 | |
| 1,190,000 | Suffolk County, NY IDA (Guide Dog Foundation, Inc.) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.350%, 5/2/2019 | 1,190,000 | |
| 5,700,000 | Triborough Bridge & Tunnel Authority, NY, (Series 2005B-3) Daily VRDNs, (State Street Bank and Trust Co. LOC), 2.270%, 5/1/2019 | 5,700,000 | |
| 12,500,000 | Triborough Bridge & Tunnel Authority, NY, (Series B-1) Daily VRDNs, (Bank of America N.A. LOC), 2.310%, 5/1/2019 | 12,500,000 | |
| 4,950,000 | Triborough Bridge & Tunnel Authority, NY, (Series B-2) Daily VRDNs, (Citibank N.A., New York LOC), 2.220%, 5/1/2019 | 4,950,000 | |
| 5,310,000 | Utica, NY Industrial Development Agency Civic Facility (Munson-Williams-Proctor Arts Institute), (Series 2006) Weekly VRDNs, (Citizens Bank, N.A., Providence LOC), 2.470%, 5/2/2019 | 5,310,000 | |
| 2,290,000 | Van Buren, NY BANs, 3.000%, 1/17/2020 | 2,301,200 | |
| 3,190,000 | Watertown, NY (Town of) BANs, 2.750%, 4/16/2020 | 3,218,546 | |
| 2,500,000 | Waverly, NY CSD BANs, 2.750%, 6/28/2019 | 2,502,732 |
Semi-Annual Shareholder Report
7
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| New York—continued | |||
| $4,538,873 | Waverly, NY, (Series 2018) BANs, 2.750%, 12/19/2019 | $4,542,265 | |
| TOTAL INVESTMENT IN SECURITIES—93.7% (AT AMORTIZED COST)2 | 475,418,950 | ||
| OTHER ASSETS AND LIABILITIES - NET—6.3%3 | 32,232,633 | ||
| TOTAL NET ASSETS—100% | $507,651,583 |
At April 30, 2019, the Fund held no securities that are subject to the federal alternative minimum tax (AMT).
| 1 | Current rate and current maturity or next reset date shown for floating rate notes and variable rate notes/demand instruments. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
| 2 | Also represents cost for federal tax purposes. |
| 3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Note: The categories of investments are shown as a percentage of total net assets at April 30, 2019.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
In valuing the Fund's assets, as of April 30, 2019, all investments of the Fund are valued using amortized cost, which is a methodology utilizing Level 2 inputs.
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The following acronyms are used throughout this portfolio:
| AMT | —Alternative Minimum Tax |
| BANs | —Bond Anticipation Notes |
| CP | —Commercial Paper |
| CSD | —Central School District |
| FHLB | —Federal Home Loan Bank |
| FHLMC | —Federal Home Loan Mortgage Corporation |
| FNMA | —Federal National Mortgage Association |
| GTD | —Guaranteed |
| HFA | —Housing Finance Authority |
| IDA | —Industrial Development Authority |
| LIQ | —Liquidity Agreement |
| LOC | —Letter of Credit |
| RANs | —Revenue Anticipation Notes |
| TOBs | —Tender Option Bonds |
| VRDNs | —Variable Rate Demand Notes |
| VRDPs | —Variable Rate Demand Preferreds |
See Notes which are an integral part of the Financial Statements
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Financial Highlights–Wealth Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.007 | 0.011 | 0.006 | 0.002 | 0.0001 | 0.0001 |
| Net realized gain | 0.0001 | — | 0.0001 | — | 0.0001 | 0.0001 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.007 | 0.011 | 0.006 | 0.002 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.007) | (0.011) | (0.006) | (0.002) | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | — | (0.000)1 | — | (0.000)1 | (0.000)1 | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.007) | (0.011) | (0.006) | (0.002) | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.69% | 1.08% | 0.56% | 0.16% | 0.01% | 0.01% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 0.32%3 | 0.32% | 0.32% | 0.22%4 | 0.12% | 0.13% |
| Net investment income | 1.39%3 | 1.10% | 0.58% | 0.10% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.18%3 | 0.25% | 0.34% | 0.40% | 0.48% | 0.45% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $279,695 | $211,511 | $111,061 | $70,496 | $215,975 | $260,579 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.22% after taking into account these expense reductions. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
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Statement of Assets and Liabilities
April 30, 2019 (unaudited)
| Assets: | ||
| Investment in securities, at amortized cost and fair value | $475,418,950 | |
| Cash | 330,784 | |
| Income receivable | 2,090,861 | |
| Receivable for shares sold | 30,004,828 | |
| TOTAL ASSETS | 507,845,423 | |
| Liabilities: | ||
| Payable for shares redeemed | $27,566 | |
| Income distribution payable | 25,485 | |
| Payable for investment adviser fee (Note 4) | 1,919 | |
| Payable for administrative fees (Note 4) | 1,039 | |
| Payable for transfer agent fee | 18,090 | |
| Payable for portfolio accounting fees | 33,351 | |
| Payable for distribution services fee (Note 4) | 21,015 | |
| Payable for other service fees (Note 4) | 47,090 | |
| Payable for share registration costs | 15,252 | |
| Accrued expenses (Note 4) | 3,033 | |
| TOTAL LIABILITIES | 193,840 | |
| Net assets for 507,607,651 shares outstanding | $507,651,583 | |
| Net Assets Consist of: | ||
| Paid-in capital | $507,607,651 | |
| Total distributable earnings (loss) | 43,932 | |
| TOTAL NET ASSETS | $507,651,583 | |
| Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
| Wealth Shares: | ||
| $279,694,752 ÷ 279,670,792 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Service Shares: | ||
| $183,018,226 ÷ 183,002,193 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Cash II Shares: | ||
| $9,880,038 ÷ 9,879,189 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Cash Series Shares: | ||
| $35,058,567 ÷ 35,055,477 shares outstanding, no par value, unlimited shares authorized | $1.00 |
See Notes which are an integral part of the Financial Statements
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Statement of Operations
Six Months Ended April 30, 2019 (unaudited)
| Investment Income: | |||
| Interest | $3,840,152 | ||
| Expenses: | |||
| Investment adviser fee (Note 4) | $672,037 | ||
| Administrative fee (Note 4) | 178,791 | ||
| Custodian fees | 8,039 | ||
| Transfer agent fee | 127,966 | ||
| Directors'/Trustees' fees (Note 4) | 1,446 | ||
| Auditing fees | 10,960 | ||
| Legal fees | 6,644 | ||
| Portfolio accounting fees | 67,106 | ||
| Distribution services fee (Note 4) | 336,161 | ||
| Other service fees (Notes 2 and 4) | 270,898 | ||
| Share registration costs | 37,411 | ||
| Printing and postage | 11,146 | ||
| Miscellaneous (Note 4) | 3,855 | ||
| TOTAL EXPENSES | 1,732,460 | ||
| Waivers and Reimbursement: | |||
| Waiver of investment adviser fee (Note 4) | $(397,583) | ||
| Waiver/reimbursement of other operating expenses (Notes 2 and 4) | (266,577) | ||
| TOTAL WAIVERS AND REIMBURSEMENT | (664,160) | ||
| Net expenses | 1,068,300 | ||
| Net investment income | 2,771,852 | ||
| Net realized gain on investments | 40,695 | ||
| Change in net assets resulting from operations | $2,812,547 |
See Notes which are an integral part of the Financial Statements
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Statement of Changes in Net Assets
| Six Months Ended (unaudited) 4/30/2019 | Year Ended 10/31/2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations: | ||
| Net investment income | $2,771,852 | $2,409,618 |
| Net realized gain | 40,695 | — |
| CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 2,812,547 | 2,409,618 |
| Distributions to Shareholders: | ||
| Wealth Shares | (1,607,447) | (1,739,804) |
| Service Shares | (984,577) | (409,245) |
| Cash II Shares | (52,114) | (68,743) |
| Cash Series Shares | (127,619) | (190,481) |
| CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (2,771,757) | (2,408,273) |
| Share Transactions: | ||
| Proceeds from sale of shares | 559,866,428 | 590,949,152 |
| Net asset value of shares issued to shareholders in payment of distributions declared | 2,582,945 | 2,227,719 |
| Cost of shares redeemed | (339,960,512) | (635,997,444) |
| CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 222,488,861 | (42,820,573) |
| Change in net assets | 222,529,651 | (42,819,228) |
| Net Assets: | ||
| Beginning of period | 285,121,932 | 327,941,160 |
| End of period | $507,651,583 | $285,121,932 |
See Notes which are an integral part of the Financial Statements
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Notes to Financial Statements
April 30, 2019 (unaudited)
1. ORGANIZATION
Money Market Obligations Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of 20 portfolios. The financial statements included herein are only those of Federated New York Municipal Cash Trust (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers four classes of shares: Wealth Shares, Service Shares, Cash II Shares and Cash Series Shares. The financial highlights of the Service Shares, Cash II Shares and Cash Series Shares are presented separately. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to provide current income exempt from federal regular income tax and the personal income taxes imposed by New York State and New York municipalities consistent with stability of principal. Interest income from the Fund's investments may be subject to the federal AMT for individuals.
The Fund operates as a retail money market fund. As a retail money market fund, the Fund: (1) will generally continue to use amortized cost to value its portfolio securities and transact at a stable $1.00 net asset value (NAV); (2) has adopted policies and procedures reasonably designed to limit investments in the Fund to accounts beneficially owned by natural persons as required for a retail money market fund by Rule 2a-7 under the Act; and (3) has adopted policies and procedures to impose liquidity fees on redemptions and/or temporary redemption gates in the event that the Fund's weekly liquid assets were to fall below a designated threshold, if the Fund's Board of Trustees (the “Trustees”) determine such liquidity fees or redemption gates are in the best interest of the Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
Securities are valued at amortized cost. Under the amortized cost valuation method, an investment is valued initially at its cost as determined in accordance with GAAP. The Fund then adjusts the amount of interest income accrued each day over the term of the investment to account for any difference between the initial cost of the investment and the amount payable at its maturity. If amortized cost is determined not to approximate fair value, the value of the portfolio securities will be determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share.
The Trustees have ultimate responsibility for determining the fair value of investments. The Trustees have appointed a valuation committee (“Valuation Committee”) comprised of officers of the Fund, Federated Investment Management Company (the “Adviser”) and certain of the Adviser's affiliated companies to assist in determining fair value of securities and in overseeing the comparison of amortized cost to market-based value. The Trustees have also authorized
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the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of monitoring the relationship of market-based value and amortized cost. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs and assumptions), and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared daily and paid monthly. Amortization/accretion of premium and discount is included in investment income. Investment income, realized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. The detail of the total fund expense waivers and reimbursement of $664,160 is disclosed in various locations in this Note 2 and Note 5.
Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Other Service Fees
The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund's Wealth Shares, Service Shares, Cash II Shares and Cash Series Shares to unaffiliated financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts.
Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees. For the six months ended April 30, 2019, other service fees for the Fund were as follows:
| Other Service Fees Incurred | Other Service Fees Reimbursed | |
| Service Shares | $210,641 | $(58,810) |
| Cash II Shares | 13,816 | — |
| Cash Series Shares | 46,441 | — |
| TOTAL | $270,898 | $(58,810) |
For the six months ended April 30, 2019, the Fund's Wealth Shares did not incur other service fees.
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Federal Taxes
It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the six months ended April 30, 2019, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of April 30, 2019, tax years 2015 through 2018 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.
When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Restricted Securities
The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. Restricted securities are valued at amortized cost in accordance with Rule 2a-7 under the Act.
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. The Fund applies investment company accounting and reporting guidance.
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3. SHARES OF BENEFICIAL INTEREST
The following tables summarize share activity:
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Wealth Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 253,439,171 | $253,439,171 | 338,736,312 | $338,736,312 |
| Shares issued to shareholders in payment of distributions declared | 1,474,785 | 1,474,785 | 1,696,840 | 1,696,840 |
| Shares redeemed | (186,751,539) | (186,751,539) | (239,985,503) | (239,985,503) |
| NET CHANGE RESULTING FROM WEALTH SHARE TRANSACTIONS | 68,162,417 | $68,162,417 | 100,447,649 | $100,447,649 |
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Service Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 278,957,112 | $278,957,112 | 108,636,153 | $108,636,153 |
| Shares issued to shareholders in payment of distributions declared | 931,473 | 931,473 | 280,484 | 280,484 |
| Shares redeemed | (125,548,305) | (125,548,305) | (144,764,861) | (144,764,861) |
| NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS | 154,340,280 | $154,340,280 | (35,848,224) | $(35,848,224) |
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Cash II Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 8,057,276 | $8,057,276 | 18,428,713 | $18,428,713 |
| Shares issued to shareholders in payment of distributions declared | 50,919 | 50,919 | 68,484 | 68,484 |
| Shares redeemed | (7,763,783) | (7,763,783) | (19,944,089) | (19,944,089) |
| NET CHANGE RESULTING FROM CASH II SHARE TRANSACTIONS | 344,412 | $344,412 | (1,446,892) | $(1,446,892) |
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Cash Series Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 19,412,869 | $19,412,869 | 125,147,974 | $125,147,974 |
| Shares issued to shareholders in payment of distributions declared | 125,768 | 125,768 | 181,911 | 181,911 |
| Shares redeemed | (19,896,885) | (19,896,885) | (231,302,991) | (231,302,991) |
| NET CHANGE RESULTING FROM CASH SERIES SHARE TRANSACTIONS | (358,248) | $(358,248) | (105,973,106) | $(105,973,106) |
| NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 222,488,861 | $222,488,861 | (42,820,573) | $(42,820,573) |
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4. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.30% of the Fund's average daily net assets. Prior to February 28, 2018, the annual advisory fee was 0.40% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, the Adviser voluntarily waived $397,583 of its fee.
Administrative Fee
Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below:
| Administrative Fee | Average Daily Net Assets of the Investment Complex |
| 0.100% | on assets up to $50 billion |
| 0.075% | on assets over $50 billion |
Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, the annualized fee paid to FAS was 0.080% of average daily net assets of the Fund.
In addition, FAS may charge certain out-of-pocket expenses to the Fund.
Distribution Services Fee
The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Service Shares, Cash II Shares and Cash Series Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses at the following percentages of average daily net assets annually, to compensate FSC:
| Percentage of Average Daily Net Assets of Class | |
| Service Shares | 0.25% |
| Cash II Shares | 0.25% |
| Cash Series Shares | 0.60% |
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Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, distribution services fees for the Fund were as follows:
| Distribution Services Fees Incurred | Distribution Services Fees Waived | |
| Service Shares | $210,877 | $(177,138) |
| Cash II Shares | 13,826 | (2,765) |
| Cash Series Shares | 111,458 | (27,864) |
| TOTAL | $336,161 | $(207,767) |
When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended April 30, 2019, FSC retained $47,447 fees paid by the Fund.
Other Service Fees
For the six months ended April 30, 2019, FSSC received $915 and reimbursed $58,810 of the other service fees disclosed in Note 2.
Expense Limitation
Due to the possibility of changes in market conditions and other factors, there can be no assurance that the level of waivers/reimbursement/reduction of Fund expenses reflected in the financial highlights will be maintained in the future. However, the Adviser and certain of its affiliates (which may include FSC, FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, extraordinary expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund's Wealth Shares, Service Shares, Cash II Shares and Cash Series Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.32%, 0.54%, 0.77% and 1.02% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) March 1, 2020; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.
Interfund Transactions
During the six months ended April 30, 2019, the Fund engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and amounted to $219,595,000 and $136,775,000, respectively.
Directors'/Trustees' and Miscellaneous Fees
Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Directors'/Trustees' fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
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5. CONCENTRATION OF RISK
Since the Fund invests a substantial portion of its assets in issuers located in one state, it will be more susceptible to factors adversely affecting issuers of that state than would be a comparable tax-exempt mutual fund that invests nationally. In order to reduce the credit risk associated with such factors, at April 30, 2019, 33.0% of the securities in the portfolio of investments were backed by letters of credit or bond insurance of various financial institutions and financial guaranty assurance agencies. The largest percentage of investments insured by or supported (backed) by a letter of credit from any one institution or agency, was 6.2% of total investments.
6. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of April 30, 2019, there were no outstanding loans. During the six months ended April 30, 2019, the program was not utilized.
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Shareholder Expense Example (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2018 to April 30, 2019.
ACTUAL EXPENSES
The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Beginning Account Value 11/1/2018 | Ending Account Value 4/30/2019 | Expenses Paid During Period1 | |
| Actual | $1,000 | $1,006.90 | $1.59 |
| Hypothetical (assuming a 5% return before expenses) | $1,000 | $1,023.20 | $1.61 |
| 1 | Expenses are equal to the Fund's annualized net expense ratio of 0.32%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). |
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Evaluation and Approval of Advisory Contract–May 2018
Federated new york municipal cash trust (the “Fund”)
At its meetings in May 2018, the Fund's Board of Trustees (the “Board”), including a majority of those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the Fund's investment advisory contract for an additional one-year term. The Board's decision regarding the contract reflects the exercise of its business judgment after considering all of the information received on whether to continue the existing arrangements.
The Board had previously appointed a Senior Officer, whose duties included specified responsibilities relating to the process by which advisory fees are to be charged to a fund advised by Federated Investment Management Company (the “Adviser”) or its affiliates (collectively, “Federated”) (each, a “Federated fund”). The Senior Officer's responsibilities included preparing and furnishing to the Board an annual independent written evaluation that covered topics discussed below. In December 2017, the Senior Officer position was eliminated. Notwithstanding the elimination of the Senior Officer position, at the request of the Independent Trustees, the Fund's Chief Compliance Officer (the CCO) furnished to the Board in advance of its May 2018 meetings an independent written evaluation covering substantially the same topics that had been covered in the Senior Officer's written evaluation in prior years. The Board considered the CCO's independent written evaluation (the “CCO Fee Evaluation Report”), along with other information, in evaluating the reasonableness of the Fund's management fee and in deciding to approve the continuation of the investment advisory contract. Consistent with the former Senior Officer position, the CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees.
The Board also considered judicial decisions concerning allegedly excessive investment advisory fees in making its decision. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser's fiduciary duty with respect to its receipt of compensation from a fund: (1) the nature and quality of the services provided by an adviser to a fund and its shareholders (including the performance of the fund, its benchmark and comparable funds); (2) an adviser's cost of providing the services (including the profitability to an adviser of providing advisory services to a fund); (3) the extent to which an adviser may realize “economies of scale” as a fund grows larger and, if such economies of scale exist, whether they have been shared with a fund and its shareholders or the family of funds; (4) any “fall-out” financial benefits that accrue to an adviser because of its relationship with a fund (including
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research services received from brokers that execute fund trades and any fees paid to affiliates of an adviser for services rendered to a fund); (5) comparative fee and expense structures (including a comparison of fees paid to an adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the Adviser or its affiliates for what might be viewed as like services); and (6) the extent of care, conscientiousness and independence with which the fund's board members perform their duties and their expertise (including whether they are fully informed about all facts the board deems relevant to its consideration of an adviser's services and fees). The Board noted that the Securities and Exchange Commission (SEC) disclosure requirements regarding the basis for the Board's approval of the Fund's investment advisory contract generally align with the factors listed above. The Board was aware of these factors and was guided by them in its review of the Fund's investment advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.
The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds. The Independent Trustees were assisted in their deliberations by independent legal counsel.
In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board received detailed information about the Fund and the Federated organization throughout the year, and in connection with its May meetings at which the Board's formal approval of the advisory and subadvisory contracts occurred. In this regard, Federated provided much of this information at each regular meeting of the Board, and furnished additional information specifically in connection with the May meetings. In the months preceding the May meetings, the Board requested and reviewed written materials prepared by Federated in response to requests on behalf of the Independent Trustees encompassing a wide variety of topics. At the May meetings, in addition to meeting in separate sessions of the Independent Trustees without management present, senior management of the Adviser also met with the Independent Trustees and their counsel to discuss the materials presented and such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the advisory and subadvisory contracts. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose.
The Board's consideration of the investment advisory contract included review of the CCO Fee Evaluation Report, accompanying data and additional information covering the following matters among others: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in terms relative to its particular investment program and certain competitor or “peer group” funds and/or other benchmarks, as appropriate) and comments on the
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reasons for performance; the Fund's investment objectives; the Fund's expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to similar and/or competing funds), with due regard for contractual or voluntary expense limitations; the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial and other risks assumed by the Adviser in sponsoring the Fund; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are generally available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.
While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged by other advisers for managing funds with comparable investment programs, the Board has found the use of such comparisons to be relevant to its deliberations. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund's total expense ratio (i.e., gross and net advisory fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated using data supplied by independent fund ranking organizations (the “Peer Group”). The Board received a description of the composition and methodology used to select the Peer Group. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because it is believed that they are more relevant. For example, other mutual funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles. Also, they are the type of investment vehicle, in fact, chosen and maintained by the Fund's investors. The range of their fees and expenses, therefore, appears to be a relevant indicator of what consumers have found to be reasonable in the marketplace in which the Fund competes.
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The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund's fee rates relative to its Peer Group. In this regard, the Board noted that the contractual advisory fee rate was above the median of the relevant Peer Group, but the Board noted the applicable waivers and reimbursements, and the overall expense structure of the Fund remained competitive in the context of other factors considered by the Board.
For comparison, the CCO reviewed the fees charged by Federated for providing advisory services to products other than the Federated funds (e.g., institutional and separate accounts and third-party unaffiliated mutual funds for which Federated serves as sub-adviser) (referenced to as “Comparable Funds/Accounts”). With respect to Comparable Funds/Accounts other than third-party mutual funds, the CCO concluded that they are inherently different products. Those differences include, but are not limited to, different types of targeted investors; different applicable laws and regulations; different legal structures; different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; and the time spent by portfolio managers and their teams, as well as personnel in the Funds Financial Services, Legal, Compliance and Risk Management departments, in reviewing securities pricing, addressing different administrative responsibilities, addressing different degrees of risk associated with management and a variety of different costs. The CCO also reviewed the differences in the nature of the services required for Federated to manage its proprietary mutual fund business versus managing a discrete pool of assets as a sub-adviser to another institution's mutual fund, and that Federated generally performs significant additional services and assumes substantially greater risk in managing the Fund and other Federated funds than in its role as sub-adviser to an unaffiliated third-party mutual fund. The CCO did not consider the fees for providing advisory services to Comparable Funds/Accounts to be determinative in judging the appropriateness of the Federated funds' advisory fees.
Following such evaluation, and full deliberations, the Board concluded that the fees and expenses of the Fund are reasonable and supported renewal of the Fund's investment advisory contract.
The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of the Adviser and its affiliates dedicated to the Fund. In this regard, the Board evaluated, among other things, the Adviser's personnel, experience, track record, overall reputation and willingness to invest in personnel and infrastructure that benefit the Fund. In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and the Adviser's ability and experience in attracting and retaining qualified personnel to service the Fund. The Board noted the compliance program of the Adviser and the compliance-related resources provided to the Fund by the Adviser, including the Adviser's commitment to
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respond to rulemaking initiatives of the SEC. The Fund's ability to deliver competitive performance when compared to its Peer Group was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund's investment program. The Adviser's ability to execute this program was one of the Board's considerations in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services warrant the continuation of the investment advisory contract.
In evaluating the Fund's investment performance, the Board considered performance results in light of the Fund's investment objective, strategies and risks, as disclosed in the Fund's prospectus. The Board considered detailed investment reports on the Fund's performance that were provided to the Board throughout the year and in connection with the May meetings. The CCO also reviewed information regarding the performance of other mutual funds in the Peer Group, noting the CCO's view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases individual funds may exhibit significant and unique differences in their objectives and management techniques when compared to other funds within a Peer Group.
The Fund's performance was above the median of the relevant Peer Group for the one-year period covered by the CCO Fee Evaluation Report. The Board also considered the relatively tight dispersion of performance data with respect to the Fund and its Peer Group.
Following such evaluation, and full deliberations, the Board concluded that the performance of the Fund supported renewal of the Fund's investment advisory contract.
The Board also received financial information about Federated, including information regarding the compensation and ancillary (or “fall-out”) benefits Federated derived from its relationships with the Federated funds. This information covered not only the fees under the investment advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator and distributor). In this regard, the Board considered that certain Federated subsidiaries provide distribution and shareholder services to the Federated funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The information also detailed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a Federated fund to be competitive in the marketplace, the Adviser and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to Federated fund investors and/or indicated to the Board their intention to do so in the future. Moreover, the Board receives regular reporting as to the institution, adjustment or elimination of these voluntary waivers.
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In 2018, the Board approved a reduction of 10 basis points in the contractual advisory fee.
Federated furnished information, requested by the CCO, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the CCO. The CCO noted that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs continues to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable, since a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated fund and may produce unintended consequences. The allocation information, including the CCO's view that fund-by-fund estimations may be unreliable, was considered in the evaluation by the Board.
The Board and the CCO also reviewed information compiled by Federated comparing its profitability information to other publicly held fund management companies, including information regarding profitability trends over time. In this regard, the CCO concluded that Federated's profit margins did not appear to be excessive. The CCO also noted that Federated appeared financially sound, with the resources necessary to fulfill its obligations under its contracts with the Fund.
The CCO Fee Evaluation Report also discussed the notion of possible realization of “economies of scale” as a fund grows larger. In this regard, the Board considered that the Adviser has made significant and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, shareholder services, compliance, internal audit and risk management functions, as well as systems technology (including technology relating to cybersecurity) and that the benefits of these efforts (as well as any economies of scale, should they exist) were likely to be shared with the Federated fund family as a whole. The Board noted that the Adviser's investments in these areas are extensive. In addition, the Board considered that the Adviser and its affiliates have frequently waived fees and/or reimbursed expenses and that this has allowed fund shareholders to share potential economies of scale with shareholders. The Board also considered that such waivers and reimbursements can provide protection from an increase in expenses if a Federated fund's assets decline. Federated, as it does throughout the year, and specifically in connection with the Board's review of the advisory and subadvisory contracts, furnished information relative to revenue sharing or adviser-paid fees. Federated and the CCO noted that this information should be viewed to determine if there was an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, and should not be viewed to determine the appropriateness of advisory fees because it would represent marketing and distribution expenses. The Board also noted the absence of any applicable
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regulatory or industry guidelines on this subject, which (as discussed in the CCO Fee Evaluation Report) is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with “breakpoints” that serve to reduce the fee as a fund attains a certain size.
The CCO stated that his observations and the information accompanying the CCO Fee Evaluation Report supported a finding by the Board that the management fee for the Fund was reasonable. Under these circumstances, no objection was raised to the continuation of, the Fund's investment advisory contract. The CCO also recognized that the Board's evaluation of the Federated funds' advisory and subadvisory arrangements is a continuing and on-going process that is informed by the information that the Board requests and receives from management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its on-going oversight of the Federated funds.
In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an investment advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the investment advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund. The Board concluded that, in light of the factors summarized above, including the nature, quality and scope of the services provided to the Fund by the Adviser and its affiliates, continuation of the investment advisory contract was appropriate.
The Board based its decision to approve the investment advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the continuation of the contract reflects its view that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing arrangement.
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Voting Proxies on Fund Portfolio Securities
A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with the Fund and share class name at www.FederatedInvestors.com/FundInformation. Form N-PX filings are also available at the SEC's website at www.sec.gov.
Portfolio Schedule
The Fund files with the SEC a complete schedule of its portfolio holdings as of the close of each month on “Form N-MFP.” Form N-MFP is available on the SEC's website at www.sec.gov. You may access Form N-MFP via the link to the Fund and share class name at www.FederatedInvestors.com.
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You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
This Report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called “householding”), as permitted by applicable rules. The Fund's “householding” program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the “householding” program. The Fund is also permitted to treat a shareholder as having given consent (“implied consent”) if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to “household” at least sixty (60) days before it begins “householding” and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to “opt out” of “householding.” Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of “householding” at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.
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Federated New York Municipal Cash Trust
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedInvestors.com
or call 1-800-341-7400.
or call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 608919858
35088 (6/19)
Federated is a registered trademark of Federated Investors, Inc.
2019 ©Federated Investors, Inc.
2019 ©Federated Investors, Inc.
Semi-Annual Shareholder Report
April 30, 2019
| Share Class | Ticker | Wealth | PAMXX | Service | FPAXX | Cash Series | PACXX |
Federated Pennsylvania Municipal Cash Trust
A Portfolio of Money Market Obligations Trust
IMPORTANT NOTICE REGARDING REPORT DELIVERY
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4. Your election to receive reports in paper will apply to all funds held with the Fund complex or your financial intermediary.
The Fund is a Retail Money Market Fund and is only available for investment to accounts beneficially owned by natural persons.
Not FDIC Insured ■ May Lose Value ■ No Bank Guarantee
CONTENTS
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Portfolio of Investments Summary Tables (unaudited)
At April 30, 2019, the Fund's portfolio composition1 was as follows:
| Security Type | Percentage of Total Net Assets |
| Variable Rate Demand Instruments | 84.1% |
| Municipal Notes | 9.9% |
| Commercial Paper | 5.0% |
| Other Assets and Liabilities—Net2 | 1.0% |
| TOTAL | 100.0% |
At April 30, 2019, the Fund's effective maturity schedule3 was as follows:
| Securities With an Effective Maturity of: | Percentage of Total Net Assets |
| 1-7 Days | 76.0% |
| 8-30 Days | 0.9% |
| 31-90 Days | 21.2% |
| 91-180 Days | 0.9% |
| 181 Days or more | 0.0% |
| Other Assets and Liabilities—Net2 | 1.0% |
| TOTAL | 100.0% |
| 1 | See the Fund's Prospectus and Statement of Additional Information for a description of these investments. |
| 2 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
| 3 | Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940, which regulates money market mutual funds. |
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Portfolio of Investments
April 30, 2019 (unaudited)
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—99.0% | ||
| Pennsylvania—99.0% | |||
| $4,000,000 | Allegheny County, PA HDA (Dialysis Clinic, Inc.), (Series 1997) Weekly VRDNs, (Fifth Third Bank, Cincinnati LOC), 2.400%, 5/2/2019 | $4,000,000 | |
| 6,210,000 | Allegheny County, PA IDA (Carnegie Museums of Pittsburgh), (Series of 2002) Weekly VRDNs, (Citizens Bank, N.A., Providence LOC), 2.360%, 5/2/2019 | 6,210,000 | |
| 40,000 | Beaver County, PA IDA (Concordia Lutheran Obligated Group), (Series 2018A) Weekly VRDNs, (BMO Harris Bank, N.A. LOC), 2.320%, 5/2/2019 | 40,000 | |
| 1,695,000 | Berks County, PA IDA (Fleetwood Industries Business Trust), (Series of 2005) Weekly VRDNs, (U.S. Bank, N.A. LOC), 2.400%, 5/2/2019 | 1,695,000 | |
| 4,995,000 | Berks County, PA Municipal Authority (Tower Health), Golden Blue (Series 2018-001) VRENs, (Barclays Bank PLC LIQ)/(Barclays Bank PLC LOC), 2.450%, 5/2/2019 | 4,995,000 | |
| 2,710,000 | Chester County, PA HEFA (Tel Hai Obligated Group Project), (Series of 2009) Weekly VRDNs, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 2.350%, 5/2/2019 | 2,710,000 | |
| 750,000 | Commonwealth of Pennsylvania, (Second Series of 2016), 5.000%, 9/15/2019 | 759,397 | |
| 2,655,000 | East Hempfield Township, PA IDA (BGT Realty), (Series of 2005) Weekly VRDNs, (Fulton Bank, N.A. LOC), 2.640%, 5/2/2019 | 2,655,000 | |
| 1,425,000 | Lancaster, PA IDA (John F. Martin & Sons, Inc.), (Series A of 2007) Weekly VRDNs, (Fulton Bank, N.A. LOC), 2.650%, 5/2/2019 | 1,425,000 | |
| 910,000 | Lehigh County, PA General Purpose Authority (Phoebe-DeVitt Homes Obligated Group), (Series B of 1998) Weekly VRDNs, (Citizens Bank, N.A., Providence LOC), 2.480%, 5/2/2019 | 910,000 | |
| 5,500,000 | Lehigh County, PA General Purpose Authority (St. Luke's University Health Network), Golden Blue 3a-7 (Series 2019-003) VRENs, (Barclays Bank PLC LIQ)/(Barclays Bank PLC LOC), 2.450%, 5/2/2019 | 5,500,000 | |
| 3,500,000 | Montgomery County, PA IDA (Lonza, Inc.), (Series 2000) Weekly VRDNs, (Landesbank Hessen-Thüringen LOC), 2.380%, 5/2/2019 | 3,500,000 | |
| 1,630,000 | Northampton County, PA IDA (Binney & Smith, Inc.), (Series 1997A) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.450%, 5/1/2019 | 1,630,000 | |
| 230,000 | Northampton County, PA IDA (Binney & Smith, Inc.), (Series 1997B) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.500%, 5/1/2019 | 230,000 | |
| 1,665,000 | Pennsylvania Economic Development Financing Authority (UPMC Health System), Tender Option Bond Trust Receipts (2015-ZM0088) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.400%, 5/2/2019 | 1,665,000 | |
| 1,670,000 | Pennsylvania HFA (Foxwood Manor Apartments), (Series 2008-O) Weekly VRDNs, (GTD by FHLMC), 2.340%, 5/2/2019 | 1,670,000 | |
| 2,830,000 | Pennsylvania HFA, (Series 2006-93B) Weekly VRDNs, (Wells Fargo Bank, N.A. LIQ), 2.320%, 5/1/2019 | 2,830,000 |
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| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| Pennsylvania—continued | |||
| $4,000,000 | Pennsylvania Infrastructure Investment Authority, (Series 2019A) CPXs, 1.650%, Mandatory Tender 5/6/2019 | $4,000,000 | |
| 4,750,000 | Pennsylvania State Turnpike Commission, (Series 2017-ZM0535) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Citibank N.A., New York LIQ), 2.470%, 5/2/2019 | 4,750,000 | |
| 5,000,000 | Pennsylvania State Turnpike Commission, RBC Muni Products (Series G-43) TOBs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.500%, Optional Tender 6/3/2019 | 5,000,000 | |
| 1,500,000 | Pennsylvania State University, (Series B of 2009) TOBs, 1.730%, Mandatory Tender 6/1/2019 | 1,500,000 | |
| 3,570,000 | Philadelphia, PA Airport System, Tender Option Bond Trust Receipts (Series 2018-XG0159) Weekly VRDNs, (Bank of America N.A. LIQ)/(Bank of America N.A. LOC), 2.370%, 5/2/2019 | 3,570,000 | |
| 2,845,000 | Philadelphia, PA Authority for Industrial Development (Philadelphia College of Osteopathic Medicine), (Series 2018-ZF0693) Weekly VRDNs, (Bank of America N.A. LIQ), 2.310%, 5/2/2019 | 2,845,000 | |
| 2,000,000 | Philadelphia, PA Water & Wastewater System, (Series 2018-XF0719) Weekly VRDNs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.330%, 5/2/2019 | 2,000,000 | |
| 2,615,000 | Southcentral PA, General Authority (Hanover Lutheran Retirement Village, Inc.), (Series 2005) Weekly VRDNs, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 2.350%, 5/3/2019 | 2,615,000 | |
| 4,000,000 | State Public School Building Authority, PA (Philadelphia, PA School District), Tender Option Bond Trust Certificates (2016-XG0085) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Credit Suisse AG LIQ), 2.420%, 5/2/2019 | 4,000,000 | |
| 705,000 | Union City, PA Area School District, (Build America Mutual Assurance INS), 5.000%, 5/15/2019 | 705,829 | |
| 4,000,000 | Washington County, PA Hospital Authority (Monongahela Valley Hospital), (Series 2018C) Weekly VRDNs, (Citizens Bank, N.A., Providence LOC), 2.360%, 5/2/2019 | 4,000,000 | |
| 2,000,000 | Washington County, PA Hospital Authority (Washington Hospital, PA), (Series 2007B) Weekly VRDNs, (PNC Bank, N.A. LOC), 2.370%, 5/2/2019 | 2,000,000 | |
| 100,000 | York County, PA IDA (UL Holdings), (Series A of 2000) Weekly VRDNs, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 2.500%, 5/3/2019 | 100,000 | |
| TOTAL INVESTMENT IN SECURITIES—99.0% (AT AMORTIZED COST)2 | 79,510,226 | ||
| OTHER ASSETS AND LIABILITIES - NET—1.0%3 | 782,637 | ||
| TOTAL NET ASSETS—100% | $80,292,863 |
Securities that are subject to the federal alternative minimum tax (AMT) represent 22.2% of the portfolio as calculated based upon total market value.
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| 1 | Current rate and current maturity or next reset date shown for floating rate notes and variable rate notes/demand instruments. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
| 2 | Also represents cost for federal tax purposes. |
| 3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Note: The categories of investments are shown as a percentage of total net assets at April 30, 2019.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
In valuing the Fund's assets as of April 30, 2019, all investments of the Fund are valued using amortized cost, which is a methodology utilizing Level 2 inputs.
The following acronyms are used throughout this portfolio:
| CPX | —Extendible Commercial Paper |
| FHLMC | —Federal Home Loan Mortgage Corporation |
| GTD | —Guaranteed |
| HDA | —Hospital Development Authority |
| HEFA | —Health and Education Facilities Authority |
| HFA | —Housing Finance Authority |
| IDA | —Industrial Development Authority |
| INS | —Insured |
| LIQ | —Liquidity Agreement |
| LOC | —Letter of Credit |
| TOBs | —Tender Option Bonds |
| VRDNs | —Variable Rate Demand Notes |
| VRENs | —Variable Rate Extendible Notes |
See Notes which are an integral part of the Financial Statements
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Financial Highlights—Wealth Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.006 | 0.010 | 0.004 | 0.001 | 0.0001 | 0.0001 |
| Net realized gain | — | — | 0.0001 | — | 0.0001 | 0.0001 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.006 | 0.010 | 0.004 | 0.001 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.006) | (0.009) | (0.004) | (0.001) | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | — | (0.001) | — | (0.000)1 | (0.000)1 | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.006) | (0.010) | (0.004) | (0.001) | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.62% | 0.99% | 0.38% | 0.13% | 0.03% | 0.02% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 0.47%3 | 0.47% | 0.47% | 0.31%4 | 0.13% | 0.12% |
| Net investment income | 1.23%3 | 0.92% | 0.41% | 0.06% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.19%3 | 0.24% | 0.30% | 0.34% | 0.49% | 0.45% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $37,897 | $29,650 | $28,371 | $10,015 | $44,264 | $61,114 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.31% after taking into account this expense reduction. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
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5
Financial Highlights—Service Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.005 | 0.008 | 0.002 | 0.0001 | 0.0001 | 0.0001 |
| Net realized gain | — | — | 0.0001 | — | 0.0001 | 0.0001 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.005 | 0.008 | 0.002 | 0.0001 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.005) | (0.007) | (0.002) | (0.000)1 | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | — | (0.001) | — | (0.000)1 | (0.000)1 | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.005) | (0.008) | (0.002) | (0.000)1 | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.52% | 0.78% | 0.18% | 0.09% | 0.03% | 0.02% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 0.67%3 | 0.67% | 0.67% | 0.31%4 | 0.13% | 0.12% |
| Net investment income | 1.03%3 | 0.71% | 0.14% | 0.02% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.24%3 | 0.29% | 0.35% | 0.59% | 0.74% | 0.71% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $15,478 | $15,589 | $12,442 | $30,951 | $103,462 | $120,457 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.31% after taking into account this expense reduction. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
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Financial Highlights—Cash Series Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.003 | 0.004 | 0.0001 | 0.0001 | 0.0001 | 0.0001 |
| Net realized gain | — | — | 0.0001 | — | 0.0001 | 0.0001 |
| TOTAL FROM INVESTMENT OPERATIONS | 0.003 | 0.004 | 0.0001 | 0.0001 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.003) | (0.003) | (0.000)1 | (0.000)1 | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | — | (0.001) | — | (0.000)1 | (0.000)1 | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.003) | (0.004) | (0.000)1 | (0.000)1 | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.32% | 0.40% | 0.01% | 0.06% | 0.03% | 0.02% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 1.06%3 | 1.05% | 0.84% | 0.36%4 | 0.13% | 0.12% |
| Net investment income | 0.63%3 | 0.32% | 0.01% | 0.01% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.25%3 | 0.31% | 0.58% | 0.94% | 1.14% | 1.11% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $26,918 | $37,606 | $45,288 | $51,604 | $83,856 | $90,441 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.36% after taking into account this expense reduction. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
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7
Statement of Assets and Liabilities
April 30, 2019 (unaudited)
| Assets: | ||
| Investment in securities, at amortized cost and fair value | $79,510,226 | |
| Cash | 635,839 | |
| Income receivable | 269,317 | |
| Receivable for shares sold | 3,025 | |
| TOTAL ASSETS | 80,418,407 | |
| Liabilities: | ||
| Income distribution payable | $54,716 | |
| Payable for investment adviser fee (Note 4) | 222 | |
| Payable for administrative fees (Note 4) | 175 | |
| Payable for portfolio accounting fees | 23,232 | |
| Payable for distribution services fee (Note 4) | 7,770 | |
| Payable for other service fees (Notes 2 and 4) | 9,347 | |
| Payable for share registration costs | 26,494 | |
| Accrued expenses (Note 4) | 3,588 | |
| TOTAL LIABILITIES | 125,544 | |
| Net assets for 80,292,206 shares outstanding | $80,292,863 | |
| Net Assets Consist of: | ||
| Paid-in capital | $80,292,143 | |
| Total distributable earnings (loss) | 720 | |
| TOTAL NET ASSETS | $80,292,863 | |
| Net Asset Value, Offering Price and Redemption Proceeds Per Share: | ||
| Wealth Shares: | ||
| $37,897,228 ÷ 37,896,918 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Service Shares: | ||
| $15,477,751 ÷ 15,477,625 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Cash Series Shares: | ||
| $26,917,884 ÷ 26,917,663 shares outstanding, no par value, unlimited shares authorized | $1.00 |
See Notes which are an integral part of the Financial Statements
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8
Statement of Operations
Six Months Ended April 30, 2019 (unaudited)
| Investment Income: | |||
| Interest | $799,727 | ||
| Expenses: | |||
| Investment adviser fee (Note 4) | $140,887 | ||
| Administrative fee (Note 4) | 37,515 | ||
| Custodian fees | 2,164 | ||
| Transfer agent fee | 23,201 | ||
| Directors'/Trustees' fees (Note 4) | 513 | ||
| Auditing fees | 10,116 | ||
| Legal fees | 5,736 | ||
| Portfolio accounting fees | 41,128 | ||
| Distribution services fee (Note 4) | 75,038 | ||
| Other service fees (Notes 2 and 4) | 67,802 | ||
| Share registration costs | 35,889 | ||
| Printing and postage | 10,898 | ||
| Miscellaneous (Note 4) | 3,174 | ||
| TOTAL EXPENSES | 454,061 | ||
| Waivers and Reimbursement: | |||
| Waiver of investment adviser fee (Note 4) | $(88,197) | ||
| Waivers/reimbursement of other operating expenses (Notes 2 and 4) | (15,085) | ||
| TOTAL WAIVERS AND REIMBURSEMENT | (103,282) | ||
| Net expenses | 350,779 | ||
| Net investment income | 448,948 | ||
| Change in net assets resulting from operations | $448,948 |
See Notes which are an integral part of the Financial Statements
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9
Statement of Changes in Net Assets
| Six Months Ended (unaudited) 4/30/2019 | Year Ended 10/31/2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations: | ||
| Net investment income | $448,948 | $538,608 |
| CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 448,948 | 538,608 |
| Distributions to Shareholders: | ||
| Wealth Shares | (241,780) | (317,831) |
| Service Shares | (88,136) | (118,576) |
| Cash Series Shares | (119,013) | (168,576) |
| CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (448,929) | (604,983) |
| Share Transactions: | ||
| Proceeds from sale of shares | 163,739,568 | 268,322,823 |
| Net asset value of shares issued to shareholders in payment of distributions declared | 166,365 | 250,544 |
| Cost of shares redeemed | (166,457,984) | (271,763,638) |
| CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (2,552,051) | (3,190,271) |
| Change in net assets | (2,552,032) | (3,256,646) |
| Net Assets: | ||
| Beginning of period | 82,844,895 | 86,101,541 |
| End of period | $80,292,863 | $82,844,895 |
See Notes which are an integral part of the Financial Statements
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10
Notes to Financial Statements
April 30, 2019 (unaudited)
1. ORGANIZATION
Money Market Obligations Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of 20 portfolios. The financial statements included herein are only those of Federated Pennsylvania Municipal Cash Trust (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers three classes of shares: Wealth Shares, Service Shares and Cash Series Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to provide current income exempt from federal regular income tax and the personal income taxes imposed by the Commonwealth of Pennsylvania consistent with stability of principal. Interest income from the Fund's investments may be subject to the federal AMT for individuals.
The Fund operates as a retail money market fund. As a retail money market fund, the Fund: (1) will generally continue to use amortized cost to value its portfolio securities and transact at a stable $1.00 net asset value (NAV); (2) has adopted policies and procedures reasonably designed to limit investments in the Fund to accounts beneficially owned by natural persons as required for a retail money market fund by Rule 2a-7 under the Act; and (3) has adopted policies and procedures to impose liquidity fees on redemptions and/or temporary redemption gates in the event that the Fund's weekly liquid assets were to fall below a designated threshold, if the Fund's Board of Trustees (the “Trustees”) determine such liquidity fees or redemption gates are in the best interest of the Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
Securities are valued at amortized cost. Under the amortized cost valuation method, an investment is valued initially at its cost as determined in accordance with GAAP. The Fund then adjusts the amount of interest income accrued each day over the term of the investment to account for any difference between the initial cost of the investment and the amount payable at its maturity. If amortized cost is determined not to approximate fair value, the value of the portfolio securities will be determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share.
The Trustees have ultimate responsibility for determining the fair value of investments. The Trustees have appointed a valuation committee (“Valuation Committee”) comprised of officers of the Fund, Federated Investment Management Company (the “Adviser”) and certain of the Adviser's affiliated companies to assist in determining fair value of securities and in overseeing the comparison of amortized cost to market-based value. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of monitoring the
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relationship of market-based value and amortized cost. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs and assumptions), and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared daily and paid monthly. Amortization/accretion of premium and discount is included in investment income. Investment income, realized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. The detail of the total fund expense waivers and reimbursement of $103,282 is disclosed in various locations in this Note 2 and Note 4.
Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Other Service Fees
The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund's Wealth Shares, Service Shares and Cash Series Shares to unaffiliated financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees. In addition, unaffiliated third-party financial intermediaries may waive other service fees. This waiver can be modified or terminated at any time. For the six months ended April 30, 2019, other service fees for the Fund were as follows:
| Other Service Fees Incurred | Other Service Fees Reimbursed | |
| Service Shares | $21,165 | $(4,091) |
| Cash Series Shares | 46,637 | — |
| TOTAL | $67,802 | $(4,091) |
For the six months ended April 30, 2019, the Fund's Wealth Shares did not incur other service fees.
Federal Taxes
It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the six months ended April 30, 2019, the Fund did not have a liability for any uncertain tax positions. The Fund
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recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of April 30, 2019, tax years 2015 through 2018 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.
When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Restricted Securities
The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at amortized cost in accordance with Rule 2a-7 under the Act.
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. The Fund applies investment company accounting and reporting guidance.
3. SHARES OF BENEFICIAL INTEREST
The following tables summarize share activity:
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Wealth Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 57,772,089 | $57,772,089 | 96,518,559 | $96,518,559 |
| Shares issued to shareholders in payment of distributions declared | 7,347 | 7,347 | 13,394 | 13,394 |
| Shares redeemed | (49,532,021) | (49,532,021) | (95,231,575) | (95,231,575) |
| NET CHANGE RESULTING FROM WEALTH SHARE TRANSACTIONS | 8,247,415 | $8,247,415 | 1,300,378 | $1,300,378 |
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| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Service Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 33,633,081 | $33,633,081 | 42,504,679 | $42,504,679 |
| Shares issued to shareholders in payment of distributions declared | 41,700 | 41,700 | 69,379 | 69,379 |
| Shares redeemed | (33,786,440) | (33,786,440) | (39,417,084) | (39,417,084) |
| NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS | (111,659) | $(111,659) | 3,156,974 | $3,156,974 |
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Cash Series Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 72,334,398 | $72,334,398 | 129,299,585 | $129,299,585 |
| Shares issued to shareholders in payment of distributions declared | 117,318 | 117,318 | 167,771 | 167,771 |
| Shares redeemed | (83,139,523) | (83,139,523) | (137,114,979) | (137,114,979) |
| NET CHANGE RESULTING FROM CASH SERIES SHARE TRANSACTIONS | (10,687,807) | $(10,687,807) | (7,647,623) | $(7,647,623) |
| NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (2,552,051) | $(2,552,051) | (3,190,271) | $(3,190,271) |
4. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.30% of the Fund's average daily net assets. Prior to February 28, 2018, the annual advisory fee was 0.40% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, the Adviser voluntarily waived $88,197 of its fee.
Administrative Fee
Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below:
| Administrative Fee | Average Daily Net Assets of the Investment Complex |
| 0.100% | on assets up to $50 billion |
| 0.075% | on assets over $50 billion |
Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, the annualized fee paid to FAS was 0.080% of average daily net assets of the Fund.
In addition, FAS may charge certain out-of-pocket expenses to the Fund.
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Distribution Services Fee
The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Cash Series Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses at 0.40% of average daily net assets, annually, to compensate FSC. Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, distribution services fees for the Fund were as follows:
| Distribution Services Fees Incurred | Distribution Services Fees Waived | |
| Cash Series Shares | $75,038 | $(10,994) |
When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended April 30, 2019, FSC retained $47,967 of fees paid by the Fund.
Other Service Fees
For the six months ended April 30, 2019, FSSC received $8,771 and reimbursed $4,091 of the other service fees disclosed in Note 2.
Expense Limitation
Due to the possibility of changes in market conditions and other factors, there can be no assurance that the level of waivers/reimbursement/reduction of Fund expenses reflected in the financial highlights will be maintained in the future. However, the Adviser and certain of its affiliates (which may include FSC, FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, extraordinary expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund's Wealth Shares, Service Shares and Cash Series Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.47%, 0.67% and 1.06% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) March 1, 2020; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.
Interfund Transactions
During the six months ended April 30, 2019, the Fund engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and amounted to $65,910,000 and $82,145,000, respectively.
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Directors'/Trustees' and Miscellaneous Fees
Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Directors'/Trustees' fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
5. CONCENTRATION OF RISK
Since the Fund invests a substantial portion of its assets in issuers located in one state, it will be more susceptible to factors adversely affecting issuers of that state than would be a comparable tax-exempt mutual fund that invests nationally. In order to reduce the credit risk associated with such factors, at April 30, 2019, 82.9% of the securities in the portfolio of investments were backed by letters of credit or bond insurance of various financial institutions and financial guaranty assurance agencies. The largest percentage of investments insured by or supported (backed) by a letter of credit from any one institution or agency, was 14.0% of total investments.
6. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of April 30, 2019, there were no outstanding loans. During the six months ended April 30, 2019, the program was not utilized.
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Shareholder Expense Example (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2018 to April 30, 2019.
ACTUAL EXPENSES
The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, toestimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and anassumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you shouldnot use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
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Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relativetotal costs of owning different funds.
| Beginning Account Value 11/1/2018 | Ending Account Value 4/30/2019 | Expenses Paid During Period1 | |
| Actual: | |||
| Wealth Shares | $1,000 | $1,006.20 | $2.34 |
| Service Shares | $1,000 | $1,005.20 | $3.33 |
| Cash Series Shares | $1,000 | $1,003.20 | $5.26 |
| Hypothetical (assuming a 5% return before expenses): | |||
| Wealth Shares | $1,000 | $1,022.50 | $2.36 |
| Service Shares | $1,000 | $1,021.50 | $3.36 |
| Cash Series Shares | $1,000 | $1,019.50 | $5.31 |
| 1 | Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
| Wealth Shares | 0.47% |
| Service Shares | 0.67% |
| Cash Series Shares | 1.06% |
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Evaluation and Approval of Advisory Contract–May 2018
Federated pennsylvania municipal cash trust (the “Fund”)
At its meetings in May 2018, the Fund's Board of Trustees (the “Board”), including a majority of those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the Fund's investment advisory contract for an additional one-year term. The Board's decision regarding the contract reflects the exercise of its business judgment after considering all of the information received on whether to continue the existing arrangements.
The Board had previously appointed a Senior Officer, whose duties included specified responsibilities relating to the process by which advisory fees are to be charged to a fund advised by Federated Investment Management Company (the “Adviser”) or its affiliates (collectively, “Federated”) (each, a “Federated fund”). The Senior Officer's responsibilities included preparing and furnishing to the Board an annual independent written evaluation that covered topics discussed below. In December 2017, the Senior Officer position was eliminated. Notwithstanding the elimination of the Senior Officer position, at the request of the Independent Trustees, the Fund's Chief Compliance Officer (the CCO) furnished to the Board in advance of its May 2018 meetings an independent written evaluation covering substantially the same topics that had been covered in the Senior Officer's written evaluation in prior years. The Board considered the CCO's independent written evaluation (the “CCO Fee Evaluation Report”), along with other information, in evaluating the reasonableness of the Fund's management fee and in deciding to approve the continuation of the investment advisory contract. Consistent with the former Senior Officer position, the CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees.
The Board also considered judicial decisions concerning allegedly excessive investment advisory fees in making its decision. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser's fiduciary duty with respect to its receipt of compensation from a fund: (1) the nature and quality of the services provided by an adviser to a fund and its shareholders (including the performance of the fund, its benchmark and comparable funds); (2) an adviser's cost of providing the services (including the profitability to an adviser of providing advisory services to a fund); (3) the extent to which an adviser may realize “economies of scale” as a fund grows larger and, if such economies of scale exist, whether they have been shared with a fund and its shareholders or the family of funds; (4) any “fall-out” financial benefits that accrue to an adviser because of its relationship with a fund (including
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research services received from brokers that execute fund trades and any fees paid to affiliates of an adviser for services rendered to a fund); (5) comparative fee and expense structures (including a comparison of fees paid to an adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the Adviser or its affiliates for what might be viewed as like services); and (6) the extent of care, conscientiousness and independence with which the fund's board members perform their duties and their expertise (including whether they are fully informed about all facts the board deems relevant to its consideration of an adviser's services and fees). The Board noted that the Securities and Exchange Commission (SEC) disclosure requirements regarding the basis for the Board's approval of the Fund's investment advisory contract generally align with the factors listed above. The Board was aware of these factors and was guided by them in its review of the Fund's investment advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.
The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds. The Independent Trustees were assisted in their deliberations by independent legal counsel.
In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board received detailed information about the Fund and the Federated organization throughout the year, and in connection with its May meetings at which the Board's formal approval of the advisory and subadvisory contracts occurred. In this regard, Federated provided much of this information at each regular meeting of the Board, and furnished additional information specifically in connection with the May meetings. In the months preceding the May meetings, the Board requested and reviewed written materials prepared by Federated in response to requests on behalf of the Independent Trustees encompassing a wide variety of topics. At the May meetings, in addition to meeting in separate sessions of the Independent Trustees without management present, senior management of the Adviser also met with the Independent Trustees and their counsel to discuss the materials presented and such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the advisory and subadvisory contracts. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose.
The Board's consideration of the investment advisory contract included review of the CCO Fee Evaluation Report, accompanying data and additional information covering the following matters among others: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in terms relative to its particular investment program and certain competitor or “peer group” funds and/or other benchmarks, as appropriate) and comments on the
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reasons for performance; the Fund's investment objectives; the Fund's expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to similar and/or competing funds), with due regard for contractual or voluntary expense limitations; the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial and other risks assumed by the Adviser in sponsoring the Fund; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are generally available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.
While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged by other advisers for managing funds with comparable investment programs, the Board has found the use of such comparisons to be relevant to its deliberations. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund's total expense ratio (i.e., gross and net advisory fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated using data supplied by independent fund ranking organizations (the “Peer Group”). The Board received a description of the composition and methodology used to select the Peer Group. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because it is believed that they are more relevant. For example, other mutual funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles. Also, they are the type of investment vehicle, in fact, chosen and maintained by the Fund's investors. The range of their fees and expenses, therefore, appears to be a relevant indicator of what consumers have found to be reasonable in the marketplace in which the Fund competes.
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The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund's fee rates relative to its Peer Group. In this regard, the Board noted that the contractual advisory fee rate was above the median of the relevant Peer Group, but the Board noted the applicable waivers and reimbursements, and the overall expense structure of the Fund remained competitive in the context of other factors considered by the Board.
For comparison, the CCO reviewed the fees charged by Federated for providing advisory services to products other than the Federated funds (e.g., institutional and separate accounts and third-party unaffiliated mutual funds for which Federated serves as sub-adviser) (referenced to as “Comparable Funds/Accounts”). With respect to Comparable Funds/Accounts other than third-party mutual funds, the CCO concluded that they are inherently different products. Those differences include, but are not limited to, different types of targeted investors; different applicable laws and regulations; different legal structures; different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; and the time spent by portfolio managers and their teams, as well as personnel in the Funds Financial Services, Legal, Compliance and Risk Management departments, in reviewing securities pricing, addressing different administrative responsibilities, addressing different degrees of risk associated with management and a variety of different costs. The CCO also reviewed the differences in the nature of the services required for Federated to manage its proprietary mutual fund business versus managing a discrete pool of assets as a sub-adviser to another institution's mutual fund, and that Federated generally performs significant additional services and assumes substantially greater risk in managing the Fund and other Federated funds than in its role as sub-adviser to an unaffiliated third-party mutual fund. The CCO did not consider the fees for providing advisory services to Comparable Funds/Accounts to be determinative in judging the appropriateness of the Federated funds' advisory fees.
Following such evaluation, and full deliberations, the Board concluded that the fees and expenses of the Fund are reasonable and supported renewal of the Fund's investment advisory contract.
The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of the Adviser and its affiliates dedicated to the Fund. In this regard, the Board evaluated, among other things, the Adviser's personnel, experience, track record, overall reputation and willingness to invest in personnel and infrastructure that benefit the Fund. In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and the Adviser's ability and experience in attracting and retaining qualified personnel to service the Fund. The Board noted the compliance program of the Adviser and the compliance-related resources provided to the Fund by the Adviser, including the Adviser's commitment to
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respond to rulemaking initiatives of the SEC. The Fund's ability to deliver competitive performance when compared to its Peer Group was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund's investment program. The Adviser's ability to execute this program was one of the Board's considerations in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services warrant the continuation of the investment advisory contract.
In evaluating the Fund's investment performance, the Board considered performance results in light of the Fund's investment objective, strategies and risks, as disclosed in the Fund's prospectus. The Board considered detailed investment reports on the Fund's performance that were provided to the Board throughout the year and in connection with the May meetings. The CCO also reviewed information regarding the performance of other mutual funds in the Peer Group, noting the CCO's view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases individual funds may exhibit significant and unique differences in their objectives and management techniques when compared to other funds within a Peer Group.
The Fund's performance was above the median of the relevant Peer Group for the one-year period covered by the CCO Fee Evaluation Report. The Board also considered the relatively tight dispersion of performance data with respect to the Fund and its Peer Group.
Following such evaluation, and full deliberations, the Board concluded that the performance of the Fund supported renewal of the Fund's investment advisory contract.
The Board also received financial information about Federated, including information regarding the compensation and ancillary (or “fall-out”) benefits Federated derived from its relationships with the Federated funds. This information covered not only the fees under the investment advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator and distributor). In this regard, the Board considered that certain Federated subsidiaries provide distribution and shareholder services to the Federated funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The information also detailed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a Federated fund to be competitive in the marketplace, the Adviser and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to Federated fund investors and/or indicated to the Board their intention to do so in the future. Moreover, the Board receives regular reporting as to the institution, adjustment or elimination of these voluntary waivers.
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In 2018, the Board approved a reduction of 10 basis points in the contractual advisory fee.
Federated furnished information, requested by the CCO, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the CCO. The CCO noted that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs continues to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable, since a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated fund and may produce unintended consequences. The allocation information, including the CCO's view that fund-by-fund estimations may be unreliable, was considered in the evaluation by the Board.
The Board and the CCO also reviewed information compiled by Federated comparing its profitability information to other publicly held fund management companies, including information regarding profitability trends over time. In this regard, the CCO concluded that Federated's profit margins did not appear to be excessive. The CCO also noted that Federated appeared financially sound, with the resources necessary to fulfill its obligations under its contracts with the Fund.
The CCO Fee Evaluation Report also discussed the notion of possible realization of “economies of scale” as a fund grows larger. In this regard, the Board considered that the Adviser has made significant and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, shareholder services, compliance, internal audit and risk management functions, as well as systems technology (including technology relating to cybersecurity) and that the benefits of these efforts (as well as any economies of scale, should they exist) were likely to be shared with the Federated fund family as a whole. The Board noted that the Adviser's investments in these areas are extensive. In addition, the Board considered that the Adviser and its affiliates have frequently waived fees and/or reimbursed expenses and that this has allowed fund shareholders to share potential economies of scale with shareholders. The Board also considered that such waivers and reimbursements can provide protection from an increase in expenses if a Federated fund's assets decline. Federated, as it does throughout the year, and specifically in connection with the Board's review of the advisory and subadvisory contracts, furnished information relative to revenue sharing or adviser-paid fees. Federated and the CCO noted that this information should be viewed to determine if there was an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, and should not be viewed to determine the appropriateness of advisory fees because it would represent marketing and distribution expenses. The Board also noted the absence of any applicable
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regulatory or industry guidelines on this subject, which (as discussed in the CCO Fee Evaluation Report) is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with “breakpoints” that serve to reduce the fee as a fund attains a certain size.
The CCO stated that his observations and the information accompanying the CCO Fee Evaluation Report supported a finding by the Board that the management fee for the Fund was reasonable. Under these circumstances, no objection was raised to the continuation of, the Fund's investment advisory contract. The CCO also recognized that the Board's evaluation of the Federated funds' advisory and subadvisory arrangements is a continuing and on-going process that is informed by the information that the Board requests and receives from management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its on-going oversight of the Federated funds.
In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an investment advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the investment advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund. The Board concluded that, in light of the factors summarized above, including the nature, quality and scope of the services provided to the Fund by the Adviser and its affiliates, continuation of the investment advisory contract was appropriate.
The Board based its decision to approve the investment advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the continuation of the contract reflects its view that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing arrangement.
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Voting Proxies on Fund Portfolio Securities
A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with the Fund and share class name at www.FederatedInvestors.com/FundInformation. Form N-PX filings are also available at the SEC's website at www.sec.gov.
Portfolio Schedule
The Fund files with the SEC a complete schedule of its portfolio holdings as of the close of each month on “Form N-MFP.” Form N-MFP is available on the SEC's website at www.sec.gov. You may access Form N-MFP via the link to the Fund and share class name at www.FederatedInvestors.com.
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You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
This Report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called “householding”), as permitted by applicable rules. The Fund's “householding” program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the “householding” program. The Fund is also permitted to treat a shareholder as having given consent (“implied consent”) if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to “household” at least sixty (60) days before it begins “householding” and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to “opt out” of “householding.” Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of “householding” at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.
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Federated Pennsylvania Municipal Cash Trust
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedInvestors.com
or call 1-800-341-7400.
or call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 60934N534
CUSIP 60934N542
CUSIP 60934N526
CUSIP 60934N542
CUSIP 60934N526
0052405 (6/19)
Federated is a registered trademark of Federated Investors, Inc.
2019 ©Federated Investors, Inc.
2019 ©Federated Investors, Inc.
Semi-Annual Shareholder Report
April 30, 2019
| Share Class | Ticker | Service | VACXX | Cash Series | VCSXX |
Federated Virginia Municipal Cash Trust
A Portfolio of Money Market Obligations Trust
IMPORTANT NOTICE REGARDING REPORT DELIVERY
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4. Your election to receive reports in paper will apply to all funds held with the Fund complex or your financial intermediary.
The Fund is a Retail Money Market Fund and is only available for investment to accounts beneficially owned by natural persons.
Not FDIC Insured ■ May Lose Value ■ No Bank Guarantee
Portfolio of Investments Summary Tables (unaudited)
At April 30, 2019, the Fund's portfolio composition1 was as follows:
| Security Type | Percentage of Total Net Assets |
| Variable Rate Demand Instruments | 72.2% |
| Municipal Notes | 25.1% |
| Commercial Paper | 2.1% |
| Other Assets and Liabilities—Net2 | 0.6% |
| TOTAL | 100.0% |
At April 30, 2019, the Fund's effective maturity schedule3 was as follows:
| Securities With an Effective Maturity of: | Percentage of Total Net Assets |
| 1-7 Days | 72.2% |
| 8-30 Days | 3.3% |
| 31-90 Days | 17.1% |
| 91-180 Days | 5.6% |
| 181 Days or more | 1.2% |
| Other Assets and Liabilities—Net2 | 0.6% |
| TOTAL | 100.0% |
| 1 | See the Fund's Prospectus and Statement of Additional Information for a description of these investments. |
| 2 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
| 3 | Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940, which regulates money market mutual funds. |
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Portfolio of Investments
April 30, 2019 (unaudited)
| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—99.4% | ||
| Virginia—94.6% | |||
| $4,790,000 | Alexandria, VA, Solar Eclipse (2017-0044) TOBs, (U.S. Bank, N.A. LIQ), 2.430%, Optional Tender 7/11/2019 | $4,790,000 | |
| 8,700,000 | Arlington County, VA IDA (Gates of Ballston Apartments), (Series 2005) Weekly VRDNs, (PNC Bank, N.A. LOC), 2.400%, 5/1/2019 | 8,700,000 | |
| 225,000 | Arlington County, VA IDA (National Science Teachers Association), (Series 2000A) Weekly VRDNs, (SunTrust Bank LOC), 2.350%, 5/1/2019 | 225,000 | |
| 16,650,000 | Arlington County, VA IDA (Westover Apartments, LP), (Series 2011A) Weekly VRDNs, (FHLMC LOC), 2.400%, 5/2/2019 | 16,650,000 | |
| 295,000 | Bedford County, VA IDA (David R. Snowman and Carol J. Snowman), (Series 1999) Weekly VRDNs, (SunTrust Bank LOC), 2.390%, 5/1/2019 | 295,000 | |
| 8,500,000 | Blackrock Virginia Municipal Bond Trust, (Series W-7) Weekly VRDPs, (Citibank N.A., New York LIQ), 2.450%, 5/2/2019 | 8,500,000 | |
| 8,000,000 | Botetourt County, VA IDA (Altec Industries, Inc.), (Series 2001) Weekly VRDNs, (Bank of America N.A. LOC), 2.490%, 5/2/2019 | 8,000,000 | |
| 7,500,000 | Chesapeake Bay Bridge & Tunnel District, VA, Tender Option Bond Trust Certificates (2017-ZM0511) Weekly VRDNs, (Assured Guaranty Municipal Corp. INS)/(Citibank N.A., New York LIQ), 2.550%, 5/2/2019 | 7,500,000 | |
| 2,210,000 | Emporia, VA Industrial Development Board (Toll VA III LP), (Series 1999) Weekly VRDNs, (SunTrust Bank LOC), 2.390%, 5/2/2019 | 2,210,000 | |
| 12,860,000 | Fairfax County, VA EDA (Mount Vernon Ladies' Association of the Union), (Series 2007) Weekly VRDNs, (SunTrust Bank LOC), 2.320%, 5/1/2019 | 12,860,000 | |
| 3,690,000 | Fairfax County, VA EDA (Young Men's Christian Association of Metropolitan Washington), (Series 2001) Weekly VRDNs, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 2.350%, 5/3/2019 | 3,690,000 | |
| 3,670,000 | Hampton Roads, VA Transportation Accountability Commission, (Series 2018-ZF2619) Weekly VRDNs, (Wells Fargo Bank, N.A. LIQ), 2.330%, 5/2/2019 | 3,670,000 | |
| 4,865,000 | Hampton Roads, VA Transportation Accountability Commission, (Series 2018-ZM0629) Weekly VRDNs, (Morgan Stanley Bank, N.A. LIQ), 2.300%, 5/2/2019 | 4,865,000 | |
| 7,500,000 | Harrisonburg, VA Redevelopment & Housing Authority (Richfield Place Associates LP), (Series 2001A: Huntington Village Apartments) Weekly VRDNs, (FNMA LOC), 2.450%, 5/2/2019 | 7,500,000 | |
| 6,300,000 | Harrisonburg, VA Redevelopment & Housing Authority (Woodman West Preservation, LP), (Series 2008) Weekly VRDNs, (FNMA LOC), 2.360%, 5/2/2019 | 6,300,000 | |
| 845,000 | Henrico County, VA EDA (JAS-LCS LLC), (Series 2001) Weekly VRDNs, (Wells Fargo Bank, N.A. LOC), 2.500%, 5/2/2019 | 845,000 |
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| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| Virginia—continued | |||
| $11,040,000 | King George County IDA, VA (Garnet of Virginia, Inc.), (Series 1996) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LOC), 2.410%, 5/2/2019 | $11,040,000 | |
| 2,000,000 | Loudoun County, VA EDA (Stone Springs VA LLC), (Series 2017) TOBs, (GTD by United States Treasury), 1.840%, Mandatory Tender 12/1/2019 | 2,000,000 | |
| 255,000 | Loudoun County, VA IDA (Howard Hughes Medical Institute), (Series 2003A) Weekly VRDNs, 2.410%, 5/1/2019 | 255,000 | |
| 1,500,000 | Loudoun County, VA IDA (Howard Hughes Medical Institute), (Series 2003C) Weekly VRDNs, 2.410%, 5/1/2019 | 1,500,000 | |
| 1,830,000 | Loudoun County, VA IDA (Howard Hughes Medical Institute), (Series 2003D) Weekly VRDNs, 2.410%, 5/1/2019 | 1,830,000 | |
| 1,550,000 | Loudoun County, VA IDA (Howard Hughes Medical Institute), (Series 2003E) Weekly VRDNs, 2.470%, 5/1/2019 | 1,550,000 | |
| 5,215,000 | Loudoun County, VA, Solar Eclipse (Series 2017-0038) TOBs, (U.S. Bank, N.A. LIQ), 2.430%, Optional Tender 7/11/2019 | 5,215,000 | |
| 2,520,000 | Lynchburg, VA Economic Development Authority (Centra Health Obligated Group), Series 2017-XG0147 Weekly VRDNs, (Barclays Bank PLC LIQ)/(Barclays Bank PLC LOC), 2.340%, 5/2/2019 | 2,520,000 | |
| 6,815,000 | Newport News, VA IDA (CNU Warwick LLC), (Series 2004) Weekly VRDNs, (Bank of America N.A. LOC), 2.360%, 5/2/2019 | 6,815,000 | |
| 1,800,000 | Norfolk, VA, (Series 2007) Weekly VRDNs, (Bank of America N.A. LIQ), 2.300%, 5/1/2019 | 1,800,000 | |
| 5,840,000 | Suffolk, VA EDA (Sentara Health Systems Obligation Group), Eagles (Series 2017-0005) TOBs, (Citibank N.A., New York LIQ), 2.500%, Optional Tender 6/6/2019 | 5,840,000 | |
| 4,600,000 | Suffolk, VA, Solar Eclipse TOBs, (U.S. Bank, N.A. LIQ), 2.430%, Optional Tender 7/25/2019 | 4,600,000 | |
| 3,565,000 | University of Virginia (The Rectors and Visitors of), (Series A), CP, 1.600%, Mandatory Tender 5/16/2019 | 3,565,000 | |
| 2,000,000 | University of Virginia (The Rectors and Visitors of), Solar Eclipse (Series 2017-0017) TOBs, (U.S. Bank, N.A. LIQ), 2.430%, Optional Tender 5/30/2019 | 2,000,000 | |
| 1,900,000 | Virginia Small Business Financing Authority (Sentara Health Systems Obligation Group), Tender Option Bond Trust Receipts (2016-ZF0360) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 2.330%, 5/2/2019 | 1,900,000 | |
| 6,640,000 | Virginia State Public Building Authority Public Facilities (Virginia State), RBC Muni Products (Series G-40) TOBs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 2.500%, Optional Tender 8/1/2019 | 6,640,000 | |
| 2,715,000 | Virginia State Public School Authority (Virginia State), (1997 Resolution Series B), 5.000%, 8/1/2019 | 2,735,989 | |
| TOTAL | 158,405,989 |
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| Principal Amount | Value | ||
| 1 | SHORT-TERM MUNICIPALS—continued | ||
| District of Columbia—4.8% | |||
| $8,120,000 | Metropolitan Washington, DC Airports Authority, Stage Trust (Series 2011-107C) TOBs, (GTD by Wells Fargo Bank, N.A.)/(Wells Fargo Bank, N.A. LIQ), 2.640%, Optional Tender 7/25/2019 | $8,120,000 | |
| TOTAL INVESTMENT IN SECURITIES—99.4% (AT AMORTIZED COST)2 | 166,525,989 | ||
| OTHER ASSETS AND LIABILITIES - NET—0.6%3 | 931,900 | ||
| TOTAL NET ASSETS—100% | $167,457,889 |
Securities that are subject to the federal alternative minimum tax (AMT) represent 46.9% of the portfolio as calculated based upon total market value.
| 1 | Current rate and current maturity or next reset date shown for floating rate notes and variable rate notes/demand instruments. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
| 2 | Also represents cost for federal tax purposes. |
| 3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Note: The categories of investments are shown as a percentage of total net assets at April 30, 2019.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
In valuing the Fund's assets as of April 30, 2019, all investments of the Fund are valued using amortized cost, which is a methodology utilizing Level 2 inputs.
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The following acronyms are used throughout this portfolio:
| CP | —Commercial Paper |
| EDA | —Economic Development Authority |
| FHLMC | —Federal Home Loan Mortgage Corporation |
| FNMA | —Federal National Mortgage Association |
| GTD | —Guaranteed |
| IDA | —Industrial Development Authority |
| INS | —Insured |
| LIQ | —Liquidity Agreement |
| LOC | —Letter of Credit |
| TOBs | —Tender Option Bonds |
| VRDNs | —Variable Rate Demand Notes |
| VRDPs | —Variable Rate Demand Preferreds |
See Notes which are an integral part of the Financial Statements
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Financial Highlights–Service Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.005 | 0.007 | 0.002 | 0.0001 | 0.0001 | 0.0001 |
| Net realized gain | — | 0.0001 | 0.001 | 0.0001 | 0.0001 | — |
| TOTAL FROM INVESTMENT OPERATIONS | 0.005 | 0.007 | 0.003 | 0.0001 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.005) | (0.007) | (0.002) | (0.000)1 | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | (0.000)1 | (0.000)1 | (0.001) | (0.000)1 | — | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.005) | (0.007) | (0.003) | (0.000)1 | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.53% | 0.75% | 0.25% | 0.06% | 0.01% | 0.01% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 0.66%3 | 0.66% | 0.66% | 0.33%4 | 0.09% | 0.10% |
| Net investment income | 1.05%3 | 0.73% | 0.17% | 0.03% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.18%3 | 0.23% | 0.29% | 0.57% | 0.79% | 0.77% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $113,997 | $110,541 | $108,573 | $118,843 | $165,877 | $204,803 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.33% after taking into account this expense reduction. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
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Financial Highlights–Cash Series Shares
(For a Share Outstanding Throughout Each Period)
| Six Months Ended (unaudited) 4/30/2019 | Year Ended October 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income From Investment Operations: | ||||||
| Net investment income | 0.003 | 0.004 | 0.0001 | 0.0001 | 0.0001 | 0.0001 |
| Net realized gain | — | 0.0001 | 0.001 | 0.0001 | 0.0001 | — |
| TOTAL FROM INVESTMENT OPERATIONS | 0.003 | 0.004 | 0.001 | 0.0001 | 0.0001 | 0.0001 |
| Less Distributions: | ||||||
| Distributions from net investment income | (0.003) | (0.004) | (0.000)1 | (0.000)1 | (0.000)1 | (0.000)1 |
| Distributions from net realized gain | (0.000)1 | (0.000)1 | (0.001) | (0.000)1 | — | (0.000)1 |
| TOTAL DISTRIBUTIONS | (0.003) | (0.004) | (0.001) | (0.000)1 | (0.000)1 | (0.000)1 |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total Return2 | 0.33% | 0.36% | 0.09% | 0.03% | 0.01% | 0.01% |
| Ratios to Average Net Assets: | ||||||
| Net expenses | 1.05%3 | 1.05% | 0.81% | 0.35%4 | 0.09% | 0.10% |
| Net investment income | 0.66%3 | 0.33% | 0.01% | 0.01% | 0.01% | 0.01% |
| Expense waiver/reimbursement5 | 0.39%3 | 0.45% | 0.73% | 1.15% | 1.39% | 1.38% |
| Supplemental Data: | ||||||
| Net assets, end of period (000 omitted) | $53,461 | $61,479 | $87,565 | $96,705 | $109,464 | $145,799 |
| 1 | Represents less than $0.001. |
| 2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 3 | Computed on an annualized basis. |
| 4 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended October 31, 2016, was 0.35% after taking into account this expense reduction. |
| 5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
See Notes which are an integral part of the Financial Statements
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7
Statement of Assets and Liabilities
April 30, 2019 (unaudited)
| Assets: | ||
| Investment in securities, at amortized cost and fair value | $166,525,989 | |
| Cash | 632,273 | |
| Income receivable | 536,836 | |
| Receivable for shares sold | 156,475 | |
| TOTAL ASSETS | 167,851,573 | |
| Liabilities: | ||
| Payable for shares redeemed | $281,860 | |
| Income distribution payable | 247 | |
| Payable for investment adviser fee (Note 4) | 2,365 | |
| Payable for administrative fees (Note 4) | 365 | |
| Payable for portfolio accounting fees | 24,618 | |
| Payable for distribution services fee (Note 4) | 13,168 | |
| Payable for other service fees (Note 4) | 35,222 | |
| Payable for share registration costs | 20,267 | |
| Accrued expenses (Note 4) | 15,572 | |
| TOTAL LIABILITIES | 393,684 | |
| Net assets for 167,457,500 shares outstanding | $167,457,889 | |
| Net Assets Consist of: | ||
| Paid-in capital | $167,457,067 | |
| Total distributable earnings | 822 | |
| TOTAL NET ASSETS | $167,457,889 | |
| Net Asset Value, Offering Price and Redemption Proceeds Per Share: | ||
| Service Shares: | ||
| $113,996,733 ÷ 113,996,468 shares outstanding, no par value, unlimited shares authorized | $1.00 | |
| Cash Series Shares: | ||
| $53,461,156 ÷ 53,461,032 shares outstanding, no par value, unlimited shares authorized | $1.00 |
See Notes which are an integral part of the Financial Statements
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8
Statement of Operations
Six Months Ended April 30, 2019 (unaudited)
| Investment Income: | |||
| Interest | $1,484,501 | ||
| Expenses: | |||
| Investment adviser fee (Note 4) | $259,509 | ||
| Administrative fee (Note 4) | 69,020 | ||
| Custodian fees | 3,185 | ||
| Transfer agent fee | 88,460 | ||
| Directors'/Trustees' fees (Note 4) | 796 | ||
| Auditing fees | 10,116 | ||
| Legal fees | 5,764 | ||
| Portfolio accounting fees | 38,518 | ||
| Distribution services fee (Note 4) | 176,246 | ||
| Other service fees (Notes 2 and 4) | 216,013 | ||
| Share registration costs | 25,632 | ||
| Printing and postage | 13,314 | ||
| Miscellaneous (Note 4) | 3,066 | ||
| TOTAL EXPENSES | 909,639 | ||
| Waivers and Reimbursement: | |||
| Waiver of investment adviser fee (Note 4) | $(71,976) | ||
| Waiver/reimbursement of other operating expenses (Notes 2 and 4) | (147,981) | ||
| TOTAL WAIVERS AND REIMBURSEMENT | (219,957) | ||
| Net expenses | 689,682 | ||
| Net investment income | 794,819 | ||
| Change in net assets resulting from operations | $794,819 |
See Notes which are an integral part of the Financial Statements
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Statement of Changes in Net Assets
| Six Months Ended (unaudited) 4/30/2019 | Year Ended 10/31/2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations: | ||
| Net investment income | $794,819 | $1,056,849 |
| Net realized gain | — | 7,526 |
| CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 794,819 | 1,064,375 |
| Distributions to Shareholders: | ||
| Service Shares | (606,518) | (817,009) |
| Cash Series Shares | (195,770) | (271,552) |
| CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (802,288) | (1,088,561) |
| Share Transactions: | ||
| Proceeds from sale of shares | 174,604,363 | 400,733,200 |
| Net asset value of shares issued to shareholders in payment of distributions declared | 801,482 | 1,086,437 |
| Cost of shares redeemed | (179,960,428) | (425,913,256) |
| CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (4,554,583) | (24,093,619) |
| Change in net assets | (4,562,052) | (24,117,805) |
| Net Assets: | ||
| Beginning of period | 172,019,941 | 196,137,746 |
| End of period | $167,457,889 | $172,019,941 |
See Notes which are an integral part of the Financial Statements
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10
Notes to Financial Statements
April 30, 2019 (unaudited)
1. ORGANIZATION
Money Market Obligations Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of 20 portfolios. The financial statements included herein are only those of Federated Virginia Municipal Cash Trust (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers two classes of shares: Service Shares and Cash Series Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to provide current income exempt from federal regular income tax and income tax imposed by the Commonwealth of Virginia consistent with stability of principal. Interest income from the Fund's investments may be subject to the federal AMT for individuals.
The Fund operates as a retail money market fund. As a retail money market fund, the Fund: (1) will generally continue to use amortized cost to value its portfolio securities and transact at a stable $1.00 net asset value (NAV); (2) has adopted policies and procedures reasonably designed to limit investments in the Fund to accounts beneficially owned by natural persons as required for a retail money market fund by Rule 2a-7 under the Act; and (3) has adopted policies and procedures to impose liquidity fees on redemptions and/or temporary redemption gates in the event that the Fund's weekly liquid assets were to fall below a designated threshold, if the Fund's Board of Trustees (the “Trustees”) determine such liquidity fees or redemption gates are in the best interest of the Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
Securities are valued at amortized cost. Under the amortized cost valuation method, an investment is valued initially at its cost as determined in accordance with GAAP. The Fund then adjusts the amount of interest income accrued each day over the term of the investment to account for any difference between the initial cost of the investment and the amount payable at its maturity. If amortized cost is determined not to approximate fair value, the value of the portfolio securities will be determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share.
The Trustees have ultimate responsibility for determining the fair value of investments. The Trustees have appointed a valuation committee (“Valuation Committee”) comprised of officers of the Fund, Federated Investment Management Company (the “Adviser”) and certain of the Adviser's affiliated companies to assist in determining fair value of securities and in overseeing the comparison of amortized cost to market-based value. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of monitoring the
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relationship of market-based value and amortized cost. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs and assumptions), and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared daily and paid monthly. Amortization/accretion of premium and discount is included in investment income. Investment income, realized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. The detail of the total fund expense waivers and reimbursement of $219,957 is disclosed in various locations in this Note 2 and Note 4.
Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Other Service Fees
The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund's Service Shares and Cash Series Shares to unaffiliated financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees. In addition, unaffiliated third-party financial intermediaries may waive other service fees. This waiver can be modified or terminated at any time. For the six months ended April 30, 2019, other service fees for the Fund were as follows:
| Other Service Fees Incurred | Other Service Fees Reimbursed | |
| Service Shares | $142,614 | $(56,921) |
| Cash Series Shares | 73,399 | — |
| TOTAL | $216,013 | $(56,921) |
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Federal Taxes
It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the six months ended April 30, 2019, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of April 30, 2019, tax years 2015 through 2018 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.
When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Restricted Securities
The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at amortized cost in accordance with Rule 2a-7 under the Act.
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. The Fund applies investment company accounting and reporting guidance.
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3. SHARES OF BENEFICIAL INTEREST
The following tables summarize share activity:
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Service Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 109,720,881 | $109,720,881 | 226,497,312 | $226,497,312 |
| Shares issued to shareholders in payment of distributions declared | 605,828 | 605,828 | 816,121 | 816,121 |
| Shares redeemed | (106,865,987) | (106,865,987) | (225,332,684) | (225,332,684) |
| NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS | 3,460,722 | $3,460,722 | 1,980,749 | $1,980,749 |
| Six Months Ended 4/30/2019 | Year Ended 10/31/2018 | |||
| Cash Series Shares: | Shares | Amount | Shares | Amount |
| Shares sold | 64,883,482 | $64,883,482 | 174,235,888 | $174,235,888 |
| Shares issued to shareholders in payment of distributions declared | 195,654 | 195,654 | 270,316 | 270,316 |
| Shares redeemed | (73,094,441) | (73,094,441) | (200,580,572) | (200,580,572) |
| NET CHANGE RESULTING FROM CASH SERIES SHARE TRANSACTIONS | (8,015,305) | $(8,015,305) | (26,074,368) | $(26,074,368) |
| NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (4,554,583) | $(4,554,583) | (24,093,619) | $(24,093,619) |
4. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.30% of the Fund's average daily net assets. Prior to February 28, 2018, the annual advisory fee was 0.40% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, the Adviser voluntarily waived $71,976 of its fee.
Administrative Fee
Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below:
| Administrative Fee | Average Daily Net Assets of the Investment Complex |
| 0.100% | on assets up to $50 billion |
| 0.075% | on assets over $50 billion |
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Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, the annualized fee paid to FAS was 0.080% of average daily net assets of the Fund.
In addition, FAS may charge certain out-of-pocket expenses to the Fund.
Distribution Services Fee
The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Cash Series Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses at 0.60% of average daily net assets, annually, to compensate FSC. Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive any portion of its fee. For the six months ended April 30, 2019, distribution services fees for the Fund were as follows:
| Distribution Services Fees Incurred | Distribution Services Fees Waived | |
| Cash Series Shares | $176,246 | $(91,060) |
When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended April 30, 2019, FSC retained $8,890 fees paid by the Fund.
Other Service Fees
For the six months ended April 30, 2019, FSSC received $175 and reimbursed $56,921 of the other service fees disclosed in Note 2.
Expense Limitation
Due to the possibility of changes in market conditions and other factors, there can be no assurance that the level of waivers/reimbursement/reduction of Fund expenses reflected in the financial highlights will be maintained in the future. However, the Adviser and certain of its affiliates (which may include FSC, FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding extraordinary expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund's Service Shares and Cash Series Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.66% and 1.05% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) March 1, 2020; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.
Interfund Transactions
During the six months ended April 30, 2019, the Fund engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and amounted to $56,680,000 and $66,585,000, respectively.
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Directors'/Trustees' and Miscellaneous Fees
Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Directors'/Trustees' fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
5. CONCENTRATION OF RISK
Since the Fund invests a substantial portion of its assets in issuers located in one state, it will be more susceptible to factors adversely affecting issuers of that state than would be a comparable tax-exempt mutual fund that invests nationally. In order to reduce the credit risk associated with such factors, at April 30, 2019, 67.2% of the securities in the portfolio of investments were backed by letters of credit or bond insurance of various financial institutions and financial guaranty assurance agencies. The largest percentage of investments insured by or supported (backed) by a letter of credit from any one institution or agency, was 10.0% of total investments.
6. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of April 30, 2019, there were no outstanding loans. During the six months ended April 30, 2019, the program was not utilized.
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Shareholder Expense Example (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2018 to April 30, 2019.
ACTUAL EXPENSES
The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, toestimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and anassumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you shouldnot use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
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Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relativetotal costs of owning different funds.
| Beginning Account Value 11/1/2018 | Ending Account Value 4/30/2019 | Expenses Paid During Period1 | |
| Actual: | |||
| Service Shares | $1,000 | $1,005.30 | $3.28 |
| Cash Series Shares | $1,000 | $1,003.30 | $5.22 |
| Hypothetical (assuming a 5% return before expenses): | |||
| Service Shares | $1,000 | $1,021.50 | $3.31 |
| Cash Series Shares | $1,000 | $1,019.60 | $5.26 |
| 1 | Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
| Service Shares | 0.66% |
| Cash Series Shares | 1.05% |
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Evaluation and Approval of Advisory Contract–May 2018
Federated virginia municipal cash trust (the “Fund”)
At its meetings in May 2018, the Fund's Board of Trustees (the “Board”), including a majority of those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the Fund's investment advisory contract for an additional one-year term. The Board's decision regarding the contract reflects the exercise of its business judgment after considering all of the information received on whether to continue the existing arrangements.
The Board had previously appointed a Senior Officer, whose duties included specified responsibilities relating to the process by which advisory fees are to be charged to a fund advised by Federated Investment Management Company (the “Adviser”) or its affiliates (collectively, “Federated”) (each, a “Federated fund”). The Senior Officer's responsibilities included preparing and furnishing to the Board an annual independent written evaluation that covered topics discussed below. In December 2017, the Senior Officer position was eliminated. Notwithstanding the elimination of the Senior Officer position, at the request of the Independent Trustees, the Fund's Chief Compliance Officer (the CCO) furnished to the Board in advance of its May 2018 meetings an independent written evaluation covering substantially the same topics that had been covered in the Senior Officer's written evaluation in prior years. The Board considered the CCO's independent written evaluation (the “CCO Fee Evaluation Report”), along with other information, in evaluating the reasonableness of the Fund's management fee and in deciding to approve the continuation of the investment advisory contract. Consistent with the former Senior Officer position, the CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees.
The Board also considered judicial decisions concerning allegedly excessive investment advisory fees in making its decision. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser's fiduciary duty with respect to its receipt of compensation from a fund: (1) the nature and quality of the services provided by an adviser to a fund and its shareholders (including the performance of the fund, its benchmark and comparable funds); (2) an adviser's cost of providing the services (including the profitability to an adviser of providing advisory services to a fund); (3) the extent to which an adviser may realize “economies of scale” as a fund grows larger and, if such economies of scale exist, whether they have been shared with a fund and its shareholders or the family of funds; (4) any “fall-out” financial benefits that accrue to an adviser because of its relationship with a fund (including
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research services received from brokers that execute fund trades and any fees paid to affiliates of an adviser for services rendered to a fund); (5) comparative fee and expense structures (including a comparison of fees paid to an adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the Adviser or its affiliates for what might be viewed as like services); and (6) the extent of care, conscientiousness and independence with which the fund's board members perform their duties and their expertise (including whether they are fully informed about all facts the board deems relevant to its consideration of an adviser's services and fees). The Board noted that the Securities and Exchange Commission (SEC) disclosure requirements regarding the basis for the Board's approval of the Fund's investment advisory contract generally align with the factors listed above. The Board was aware of these factors and was guided by them in its review of the Fund's investment advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.
The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds. The Independent Trustees were assisted in their deliberations by independent legal counsel.
In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board received detailed information about the Fund and the Federated organization throughout the year, and in connection with its May meetings at which the Board's formal approval of the advisory and subadvisory contracts occurred. In this regard, Federated provided much of this information at each regular meeting of the Board, and furnished additional information specifically in connection with the May meetings. In the months preceding the May meetings, the Board requested and reviewed written materials prepared by Federated in response to requests on behalf of the Independent Trustees encompassing a wide variety of topics. At the May meetings, in addition to meeting in separate sessions of the Independent Trustees without management present, senior management of the Adviser also met with the Independent Trustees and their counsel to discuss the materials presented and such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the advisory and subadvisory contracts. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose.
The Board's consideration of the investment advisory contract included review of the CCO Fee Evaluation Report, accompanying data and additional information covering the following matters among others: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in terms relative to its particular investment program and certain competitor or “peer group” funds and/or other benchmarks, as appropriate) and comments on the
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reasons for performance; the Fund's investment objectives; the Fund's expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to similar and/or competing funds), with due regard for contractual or voluntary expense limitations; the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial and other risks assumed by the Adviser in sponsoring the Fund; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are generally available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.
While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged by other advisers for managing funds with comparable investment programs, the Board has found the use of such comparisons to be relevant to its deliberations. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund's total expense ratio (i.e., gross and net advisory fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated using data supplied by independent fund ranking organizations (the “Peer Group”). The Board received a description of the composition and methodology used to select the Peer Group. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because it is believed that they are more relevant. For example, other mutual funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles. Also, they are the type of investment vehicle, in fact, chosen and maintained by the Fund's investors. The range of their fees and expenses, therefore, appears to be a relevant indicator of what consumers have found to be reasonable in the marketplace in which the Fund competes.
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The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund's fee rates relative to its Peer Group. In this regard, the Board noted that the contractual advisory fee rate was above the median of the relevant Peer Group, but the Board noted the applicable waivers and reimbursements, and the overall expense structure of the Fund remained competitive in the context of other factors considered by the Board.
For comparison, the CCO reviewed the fees charged by Federated for providing advisory services to products other than the Federated funds (e.g., institutional and separate accounts and third-party unaffiliated mutual funds for which Federated serves as sub-adviser) (referenced to as “Comparable Funds/Accounts”). With respect to Comparable Funds/Accounts other than third-party mutual funds, the CCO concluded that they are inherently different products. Those differences include, but are not limited to, different types of targeted investors; different applicable laws and regulations; different legal structures; different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; and the time spent by portfolio managers and their teams, as well as personnel in the Funds Financial Services, Legal, Compliance and Risk Management departments, in reviewing securities pricing, addressing different administrative responsibilities, addressing different degrees of risk associated with management and a variety of different costs. The CCO also reviewed the differences in the nature of the services required for Federated to manage its proprietary mutual fund business versus managing a discrete pool of assets as a sub-adviser to another institution's mutual fund, and that Federated generally performs significant additional services and assumes substantially greater risk in managing the Fund and other Federated funds than in its role as sub-adviser to an unaffiliated third-party mutual fund. The CCO did not consider the fees for providing advisory services to Comparable Funds/Accounts to be determinative in judging the appropriateness of the Federated funds' advisory fees.
Following such evaluation, and full deliberations, the Board concluded that the fees and expenses of the Fund are reasonable and supported renewal of the Fund's investment advisory contract.
The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of the Adviser and its affiliates dedicated to the Fund. In this regard, the Board evaluated, among other things, the Adviser's personnel, experience, track record, overall reputation and willingness to invest in personnel and infrastructure that benefit the Fund. In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and the Adviser's ability and experience in attracting and retaining qualified personnel to service the Fund. The Board noted the compliance program of the Adviser and the compliance-related resources provided to the Fund by the Adviser, including the Adviser's commitment to
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respond to rulemaking initiatives of the SEC. The Fund's ability to deliver competitive performance when compared to its Peer Group was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund's investment program. The Adviser's ability to execute this program was one of the Board's considerations in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services warrant the continuation of the investment advisory contract.
In evaluating the Fund's investment performance, the Board considered performance results in light of the Fund's investment objective, strategies and risks, as disclosed in the Fund's prospectus. The Board considered detailed investment reports on the Fund's performance that were provided to the Board throughout the year and in connection with the May meetings. The CCO also reviewed information regarding the performance of other mutual funds in the Peer Group, noting the CCO's view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases individual funds may exhibit significant and unique differences in their objectives and management techniques when compared to other funds within a Peer Group.
The Fund's performance fell below the median of the relevant Peer Group for the one-year period covered by the CCO Fee Evaluation Report. The Board discussed the Fund's performance with the Adviser and recognized the efforts being taken by the Adviser. The Board also considered the relatively tight dispersion of performance data with respect to the Fund and its Peer Group.
Following such evaluation, and full deliberations, the Board concluded that the performance of the Fund supported renewal of the Fund's investment advisory contract.
The Board also received financial information about Federated, including information regarding the compensation and ancillary (or “fall-out”) benefits Federated derived from its relationships with the Federated funds. This information covered not only the fees under the investment advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator and distributor). In this regard, the Board considered that certain Federated subsidiaries provide distribution and shareholder services to the Federated funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The information also detailed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a Federated fund to be competitive in the marketplace, the Adviser and its affiliates frequently waived
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fees and/or reimbursed expenses and have disclosed to Federated fund investors and/or indicated to the Board their intention to do so in the future. Moreover, the Board receives regular reporting as to the institution, adjustment or elimination of these voluntary waivers.
In 2018, the Board approved a reduction of 10 basis points in the contractual advisory fee.
Federated furnished information, requested by the CCO, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the CCO. The CCO noted that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs continues to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable, since a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated fund and may produce unintended consequences. The allocation information, including the CCO's view that fund-by-fund estimations may be unreliable, was considered in the evaluation by the Board.
The Board and the CCO also reviewed information compiled by Federated comparing its profitability information to other publicly held fund management companies, including information regarding profitability trends over time. In this regard, the CCO concluded that Federated's profit margins did not appear to be excessive. The CCO also noted that Federated appeared financially sound, with the resources necessary to fulfill its obligations under its contracts with the Fund.
The CCO Fee Evaluation Report also discussed the notion of possible realization of “economies of scale” as a fund grows larger. In this regard, the Board considered that the Adviser has made significant and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, shareholder services, compliance, internal audit and risk management functions, as well as systems technology (including technology relating to cybersecurity) and that the benefits of these efforts (as well as any economies of scale, should they exist) were likely to be shared with the Federated fund family as a whole. The Board noted that the Adviser's investments in these areas are extensive. In addition, the Board considered that the Adviser and its affiliates have frequently waived fees and/or reimbursed expenses and that this has allowed fund shareholders to share potential economies of scale with shareholders. The Board also considered that such waivers and reimbursements can provide protection from an increase in expenses if a Federated fund's assets decline. Federated, as it does throughout the year, and specifically in connection with the Board's review of the advisory and subadvisory contracts, furnished information relative to revenue sharing or adviser-paid fees. Federated and the CCO noted that this information should be viewed to determine if there was an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, and should not be viewed to determine the
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appropriateness of advisory fees because it would represent marketing and distribution expenses. The Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which (as discussed in the CCO Fee Evaluation Report) is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with “breakpoints” that serve to reduce the fee as a fund attains a certain size.
The CCO stated that his observations and the information accompanying the CCO Fee Evaluation Report supported a finding by the Board that the management fee for the Fund was reasonable. Under these circumstances, no objection was raised to the continuation of, the Fund's investment advisory contract. The CCO also recognized that the Board's evaluation of the Federated funds' advisory and subadvisory arrangements is a continuing and on-going process that is informed by the information that the Board requests and receives from management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its on-going oversight of the Federated funds.
In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an investment advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the investment advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund. The Board concluded that, in light of the factors summarized above, including the nature, quality and scope of the services provided to the Fund by the Adviser and its affiliates, continuation of the investment advisory contract was appropriate.
The Board based its decision to approve the investment advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the continuation of the contract reflects its view that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing arrangement.
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Voting Proxies on Fund Portfolio Securities
A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with the Fund and share class name at www.FederatedInvestors.com/FundInformation. Form N-PX filings are also available at the SEC's website at www.sec.gov.
Portfolio Schedule
The Fund files with the SEC a complete schedule of its portfolio holdings as of the close of each month on “Form N-MFP.” Form N-MFP is available on the SEC's website at www.sec.gov. You may access Form N-MFP via the link to the Fund and share class name at www.FederatedInvestors.com.
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You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
This Report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called “householding”), as permitted by applicable rules. The Fund's “householding” program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the “householding” program. The Fund is also permitted to treat a shareholder as having given consent (“implied consent”) if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to “household” at least sixty (60) days before it begins “householding” and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to “opt out” of “householding.” Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of “householding” at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.
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Federated Virginia Municipal Cash Trust
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedInvestors.com
or call 1-800-341-7400.
or call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 60934N245
CUSIP 608919825
CUSIP 608919825
G00133-01 (6/19)
Federated is a registered trademark of Federated Investors, Inc.
2019 ©Federated Investors, Inc.
2019 ©Federated Investors, Inc.
| Item 2. | Code of Ethics |
Not Applicable
| Item 3. | Audit Committee Financial Expert |
Not Applicable
| Item 4. | Principal Accountant Fees and Services |
Not Applicable
| Item 5. | Audit Committee of Listed Registrants |
Not Applicable
| Item 6. | Schedule of Investments |
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.
| Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
| Item 8. | Portfolio Managers of Closed-End Management Investment Companies |
Not Applicable
| Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers |
Not Applicable
| Item 10. | Submission of Matters to a Vote of Security Holders |
No Changes to Report
| Item 11. | Controls and Procedures |
(a) The registrant’s President and Treasurer have concluded that the
registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
| Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies |
Not Applicable
| Item 13. | Exhibits |
(a)(1) Code of Ethics- Not Applicable to this Report.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(3) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
RegistrantMoney Market Obligations Trust
By/S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
DateJune 24, 2019
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By/S/ J. Christopher Donahue
J. Christopher Donahue
Principal Executive Officer
DateJune 24, 2019
By/S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
DateJune 24, 2019